Volume7 Issue8 (1) 2018

Volume 7, Issue 8(1), August 2018
International Journal of Multidisciplinary

Educational Research
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Mettu University, Metu, Ethiopia.
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IJMER, Journal of Multidisciplinary Educational Research, concentrates on critical
and creative research in multidisciplinary traditions. This journal seeks to promote
original research and cultivate a fruitful dialogue between old and new thought.
CONTENTS
Volume 7 Issue 8(1) August 2018
S. Pg.
No No
1. The Role of Internal Control to Minimize the Fraud 1
Caused by Organizational Justice
Ni Nyoman Sri Rahayu Trisna Dewi, I Gusti Ayu
Agung Sinta Diarini and Ni Made Ernila Junipisa
2. Historical Development of Social Audit During Five Year 14
Plans of India
Syeda Noor Fathima
3. The Effect of Service Quality Toward Customers’ Loyalty 21
on 707 Beachberm Restaurant, Batubelig, Bali: A Study
on the Customers of 707 Beachberm Restaurant,
Batubelig, Bali
Ni Made Hartini and
Ni Putu Ayusintyamarantika Sari
4. Tourism Impact and Community Quality of Life: Case 33
Pererenan Village, Bali
Putu Sucita Yanthy, Ni Nyoman Sri Aryanti
and Made Sofia Wijaya
5. The Analysis of the Soundness Level of Praja Mukti Civil 51
Servant Cooperative in Buleleng Regency
I Putu Santika, Made Fandy Permana Putra
and Ni Luh Sili Antari
6. Workload Analysis of Front Office Staff at Water Mark 63
Hotel and Spa Jimbaran-Bali
NK Dewi Irwanti, M. Yusuf , NP Yunik Anggreni
and LP Sri Widiastuty
7. Torque Vectoring Differential 74
Anurag Tirumala
8. Children’ Involvement in Tourism 87
Ni Wayanmekarini, I Made Suwitrawirya
and Igab Widiantara
9. The Influence Factors of Trunyan Village Visitors 97
Luh Komang Candra Dewi, I Putu Bagus
Suthanaya, Dewiwati Sujadi
and Luh Kadek Budi Martini
10. Role of Public Dist Ribution System in Andhra Pradesh an 118
Analysis
Vanguru.Naga Satyanarayana, M. Sudhir
and M. Rajasekhara Babu
11. Heritage Tourism: Economic Valuation of Taman 129
Soekasada Ujung in Karangasem, Bali
Dewa Agus Yuda Ariawan, I Wayan Ardika, Made
Antara and Made Suradnya
12. Etap Sak Implementation in Sme in Tabanan Regency 147
Ni Nyoman Ayu Suryandari
and Daniel Raditya Tandio
13. Rotavetorgear Box Cover Plate Dimensional Error 167
Analysis Using CMM Machine
Sumit N. Karanjekar
14. The Roles of Entrepreneurial Marketing in Penetrating 175
the Export Market of Balinese Handicrafts
Ni Luh Putu Agustini Karta, Ida Ketut Kusumawijaya,
I Nengahdasi Astawa and I Gst Agung Sinta Diarini
15. The Role of Local Culinary Entrepreneurs in Tourism 190

Development in Bali
Ni Komang Nariani
16. Analysis of Income Tax Incentive for Micro, Small and 205
Medium Enterprises (MSMES) After the Issue of
Government Regulation no. 23 of 2018
Made Laksmi Sena Hartini
17. Learn to Earn: Assessing Economic Impact of Community 220
Based Tourism in Gili Trawangan, Indonesia
Putu Diah Sastri Pitanatri
18. Adolescent Behaviour a Review Under Freudian Concept 237
Sataprasuna Gayen
and Tuhin Kumar Samanta
19. Textbook Development Based on Role Playing in Job 252
Training Institution on Hospitality
Ni Nyoman Nidya Trianingrum, Edy Moeldjadi
and Sulistyoadi Jokosaharjo
20. The Protection of the Rights of the Elderly an Overview 271
on Social Security System in India
Cherukuri Sreenivasa Rao
ISSN : 2277 – 7881
Dr. K. VICTOR BABU Impact Factor :5.818 (2018)
M.A.,M.A.,M.Phil.,Ph.D.,PDF, (D.Lit) Index Copernicus Value: 5.16
Associate Professor, Institute of Education
& Editor-in-Chief
International Journal of Multidisciplinary
Educational Research (IJMER) &
Sucharitha: A Journal of Philosophy and
Religion
Mettu University, Metu, Ethiopia.
Editorial……
It is heartening to note that our journal is able to sustain the
enthusiasm and covering various facets of knowledge. It is our hope
that IJMER would continue to live up to its fullest expectations
savoring the thoughts of the intellectuals associated with its
functioning .Our progress is steady and we are in a position now to
receive evaluate and publish as many articles as we can. The response
from the academicians and scholars is excellent and we are proud to
acknowledge this stimulating aspect.
The writers with their rich research experience in the academic
fields are contributing excellently and making IJMER march to
progress as envisaged. The interdisciplinary topics bring in a spirit of
immense participation enabling us to understand the relations in the
growing competitive world. Our endeavour will be to keep IJMER as a
perfect tool in making all its participants to work to unity with their
thoughts and action.
The Editor thanks one and all for their input towards the
growth of the Knowledge Based Society. All of us together are
making continues efforts to make our predictions true in making
IJMER, a Journal of Repute
Dr.K.Victor Babu
Editor-in-Chief
SOCIAL SCIENCES, HUMANITIES, COMMERCE & MANAGEMENT, ENGINEERING

& TECHNOLOGY, MEDICINE, SCIENCES, ART & DEVELOPMENT STUDIES, LAW
www.ijmer.in
INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY EDUCATIONAL RESEARCH
ISSN : 2277-7881; IMPACT FACTOR – 5.818; IC VALUE:5.16; ISI VALUE:2.286
VOLUME 7, ISSUE 8(1), AUGUST 2018
THE ROLE OF INTERNAL CONTROL TO MINIMIZE THE

FRAUD CAUSED BY ORGANIZATIONAL JUSTICE
Ni Nyoman Sri Rahayu Trisna Dewi1
I Gusti Ayu Agung Sinta Diarini2
Ni Made Ernila Junipisa3
1,2,3
Bali, Indonesia
Abstract
Many companies often encounter with accounting fraud. The
fraud may be performed by either internal or external party.
One’s motivations to commit fraud are varied; one of them is the
sense of fairness. An individual who perceives being treated
unfairly tends to undertake actions that are against the
organisation’s goals. In order to prevent this matter to occur, an
effective internal control system is required to minimize the
possibility of fraud being committed which will negatively impact
the company. This research is intended to discover the influence
of organizational justice towards fraud, with internal control as
the moderator. 83 respondents will be applied as the sample of
this research. The method that will be applied to analyse this
data is moderated regression analysis. The result of this research
indicates that internal control is influencing the organizational
justice towards fraud.
Keywords: organizational justice, internal control, fraud
Introduction
Many companies often encounter with accounting fraud.
The fraud may be performed by either internal or external party.
According to Dewi (2017), accounting manipulation within the
business normally involves company’s internal party. The fraud
that is committed by the company’s internal party is the most
difficult fraud to be avoided. The fraud can be committed by
either the management or by the company’s employees
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themselves. If there is a goal’s bias amongs the individuals and

the company, the fraud is highly likely to occur. The impact of the
accounting fraud will lead to the decreation of the management
accountability dan will result in the increment of the monitoring
cost towards the management as proposed by the shareholder.
Sofia (2014) stated that the fraud is intentionally performed to
utilize the company’s resources for personal interests by
manuipulating data.
According to Fachrunisa (2015), the one’s motivation to
commit fraud is relatively varied. One of the theories that
explains in reagards to one’s motivation to commit fraud is the
fraud triangle theory which consists of three components namely,
pressure, opportunity, dan rationalization (Arens et al, 2008).
The pressure perceived by an employee can be from the urgent
needs for living, lack of income, unwell-paid, and lack of fairness
within the job. The one that has been treated fairly by the
company will show loyality dan well job performance. The
assessment towards the fairness within an organisation has an
impact on the one’s behaviour and reaction (Hwei dan Santosa,
2012). Puspitadewi and Irwandi (2012) explained that if the
fainess within the organisation is not well executed, the number
of the employees commit the fraud will be increased.
The concept of the organisational fairness consists of three
forms of fairness, namely distributional fairness, procedural
fairness, and interactional fairness (Bakshi dan Ekta, 2009). In
general, the employees will evaluate towards the fairness in three
classification conditions as follows, the income obtained from the
organisation (distributional fairness), formal policy or
achievement process that is allocated (procedural fairness), and
the treatment that is taken by the decision maker amongst the
personnels within the organisation (organisational fariness). The
perception in regards to the distributional, procedural, and
interactional fairness can be interrelated with various outcomes
of a certain occupation, such as an event execution, a group’s
behaviour, and work attitude. Organisation fairness is a condition
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that leads individuals to have a conviction that they are treated

fairly or unfairly by the organisation. The individual that
perceives being treated unfairly will emerge a disappointment
which leads to undertake actions that against the organisation’s
goals.
Puspitadewi and Irwandi (2012) stated that when an
employee perceives that the fairness in the organization does not
meet and there is a stimulus as well as an opportunity to commit
fraud, committed fraud is rationally the right thing to perform.
To avoid it occurs, internal control is required. According to
Committee Sponsoring Organization (COSO), internal control is
a process that is influenced by the board of directors,
management and other personnels which is formulated to provide
assurance in relation to the achievement of the performance
target in terms of effectivity and efficiency operational, financial
report reliability, and fulfilment of the law provision that can be
applied and regulated. An internal control system has a potential
to prevent fraud and error through a control on the process of
financial and organisational report as well as to ensure the law
fulfilment and the validity of the regulations.
Internal control system consists of the policy and procdure
that are designed to provide a feasible assurance to the
management that the company reaches its goal. COSO stated
that there are components interrelated to each other in internal
control system which are control environment, risk assessment
control activities information dan communication monitoring.
The effective internal control can minimize the possibility of
fraud that can harm the company. Risk management strategy can
be applied to reduce the risk of fraud by creating a strong
internal control environment (Hernawan, 2010). Pristiyanti
(2012) explained that an organisation which has a low internal
control system tends to increase the opportunity of fraud within
the organisation. A low internal control system and a low
employee’s conformity can trigger the fraud.
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Based on the discussed background, it can be concluded

that the problems of the research are as follows:
1) Does the organisation fairness have an effect towards
fraud?
2) Does internal control system improve the influence of the
organisational fairness towards fraud?
The hipothesis proposed in this reasearch are as follows:
H 1: Organisational fairness affects negatively towards
fraud.
H 2: Internal control system improves the influence of
the organisational fairness towards fraud.
Discussion
The fraud is committed to gain personal interest or to
inflict a loss of the other party. Dewi (2016) stated that the fraud
can be related to individual factors namely, greed and need.
There are two ways to commit fraud which are as follows, the
fraud within financial report and the fraud within non-financial
report. The fraud within the financial report is based on
misstatement, either overstatement or understatement, which is
providing asset or revenue overstatements or providing asset or
revenue understatements. On the other hand, the fraud within
non-financial report is based on non-financial bias statements.
The report is created to manipulate the genuine condition.
The misstatement fraud on the financial report can
potentially inflict a financial loss for the investors and creditors.
The misstatement fraud can be devided into following categories
(Herman, 2013):
a. Timing difference (improper treatment of sales), is the
financial report fraud committed by recording the transaction
time incorrectly. It can be either too early or too late from the
exact transaction time.
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b. Fictitions revenues, is the financial report fraud by creating

fictive revenue.
c. Concealed liabilities and expenses, is the financial report
fraud committed by concealing the company’s expenses which
makes the report is favourable.
d. Improper disclosure, is the financial report fraud committed
by improperly disclosing the report with an attempt to conceal
the frauds occurred in the company which makes the report
reader unaware towards the genuine condition in the
company.
e. Improper asset valuation, is the financial report fraud
committed by disregarding the the accounting principles with
an attempt to increase the revenue while reducing expenses or
liabilities.
According to (2014) and Udayani (2017), there are three
conditions that trigger the one to commit fraud which is known
as “fraud triagle”, namely:
a. Pressure
Pressure is one of the factors that triggers a person to commit
fraud. For example, a pressure due to debt or a pressure to
have a higher position in a company. The employees will
potentially undertake illegal or unethicak actions to obtain
better position and escape from pressure.
b. Opportunity
The fraud can be occurred if there is an opportunity in the
company, mainly in a company which does not have proper
internal control. By having proper internal control, the fraud
can be minimalised or even be removed.
c. Rationalization (rasional)
The ones who commit fraud assume that the fraud they did as
a normal matter. They claim that they only take a few of the
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company’s asset or revenue which will not cause a loss to the

company.
Organisational justice is the employees’ perception in
regards to how they are treated fairly by the company compared
to what they have performed or they have obtained (Azhariman,
2014). Bakshi and Ekta (2009) explained that organitational
fraud consists of distributional fairness, procedural fairness, and
interaksional fairness.
a. Distributional Fairness
The the employee will perceives this fairness if the income or
benefit is in line with the income or benefit obtained by the
other employees. Haryani and Hidayah (2013) stated that one
of the fairness definition of distributing rewards is based on
merit or equity norm. The employees which performed
excellently or productive are given major rewards.
b. Procedural Fairness
The quintessence of the procedural fairness is the attention
towards the employees which how the procedure can be well
executed (Hwei and Santosa, 2012). Haryani and Hidayah
(2013) proclaimed that there are two models that explains
procedural fairness, namely self-interest model dan group-
value model.
1) Self-Interest Model
This model is based on egocentric principle that is
experienced by the employees towards the situation caused
by the will to control or to influence the valid procedures in
the company. The intention is to obtain maximum results
for personal interests.
2) Group-Value Model
This model is based on the uncomfort feeling towards the
work environment due to an employee feels that his or her
personal interest is under the threat.
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c. Interactional Fairness
Interactional fairness is focus on social sensitivity, such as
when the superior treats the employees with respect and
dignity (Al-Zu’bi, 2010). This fairness perception is focusing
on the stage which the employees are correctly informed in
regards to the main company’s decision towards the employee
incumbency (Cheng et al., 2011). According to Herman (2013),
interactional fairness is devided into three aspects as follows:
1) Reward
The better the management treat the employees, the fairer
the interaction will be.
2) Neutrality
Neutrality can be obtained if the decision making
principles are based on objectivity and have a high-level of
validity with the use of fact instead of opinion.
3) Trust
The trust is put to the other people to reach the future
expectation.
According to PP. 60 Tahun 2008, the Internal Control
System is an integral process of actions and activities undertaken
continuously by the leadership and all employees to provide
reasonable assurance on the achievement of organizational goals
through effective activities, reliability of financial reporting,
security of state assets, and compliance with legislation. The way
that management uses to streamline internal control activities is
to review employee performance, perform information processing,
perform physical control, and perform task separation.
This research was conducted by distributing
questionnaires to 93 people as permanent employees of PT Bank
Pembangunan Daerah (BPD) Bali in Mangupura. This study used
multiple linear regression analysis, and before the analysis, first
tested the research instrument and the classical assumption test.
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Testing of research instrument included test of validity and

reliability test to know that the questionnaires used in this
research were valid and reliable. Validity test in this research
used product moment correlation. Instrument is valid if the
correlation coefficient (r) ≥0,3 and if (r) <0,3 is invalid. The
results of validity test showed all items of questionnaire
statement in this research is valid. Measurement of reliability in
this study used the formula of coefficient Alpha Cronchbach. The
instrument is said to be reliable when ri> 0.6, not reliable if ri
<0.6. Reliability test shows that the instrument used in this
research is reliable.
The classical assumption test in this study includes
normality test and heterokedastisity test.
Table 1
The Result of Classic Assumption Test
Keterangan Indikator
Normality Test Asymp. Sig. (2-tailed) 0,200
Heteroskedasticity Test Sig. X1 0,071
Sig. X2 0,792
The results of the Kolmogorov Smirnov normality test in

Table 1 show that the Sig (2-Tailed) value is 0.200. It shows that
the value of Sig (2-Tailed) 0,200> from Level of Significant
(0,05), so it can be concluded that the analyzed residual is
normally distributed. The result of heteroscedasticity test with
Glejser test in Table 1 shows that the residual absolute value or
X1 significance value is 0.071 and the significance value of X2 is
0.792. The value of significance of each variable is above the
value of α (0.05), so it can be concluded that the model does not
have heteroscedasticity problem. From the results of data
analysis in Table 1 it can be concluded that this study has met
both types of classical assumption test.
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Multiple regression analysis (moderated regression

analysis) is an analysis used to determine the effect of
organizational justice on fraud moderated by internal control.
Using the SPSS program, the results of the research in Table 2
are obtained.
Table 2
The Result of Multiple Linear Regression Analysis
Coefficientsa
Standardi
zed
Unstandardized Coefficien
Coefficients ts
Std.
Model B Error Beta
t Sig.
1 (Constant) 57.145 16.512 3.461 .001
Organizational
-4.737 2.009 -2.493 -2.358 .021
Justice
Internal
-.710 .526 -.841 -1.351 .180
Control
Organizational
Justice*
.143 .064 2.838 2.245 .027
Internal
Control
a. Dependent Variable: Fraud
Based on the table 2, The formula of Multiple Linear
Regeression Analysis as follows:
Y= 57,145 – 4,737X1 - 0,710X2 + 0,143 X1X2 + e
The first hypothesis testing was conducted to determine the
effect of organizational justice on fraud. The test results in Table
2 show the significance value (Sig.t) coefficient X1 that is
organizational justice of 0.021 smaller than α = (0.05), with
negative regression coefficient. This means that organizational
justice negatively affects fraud, so H1 is accepted. Employees who
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feel they have received justice from their organizations will tend
to avoid cheating, because they have more loyalty to the
company. Conversely, employees who think that they get
injustice in the organization will tend to be fraudulent in order to
obtain justice for them. The results of this study in accordance
with the results of research of Setiawan, et al (2015) states that
organizational justice has a negative and significant effect on
fraud.
The second hypothesis test was conducted to find out the internal
control ability in moderating the effect of organizational justice
on fraud. The test results in Table 2 show the significance value
(Sig.t) coefficient of 0.027 is smaller than α = (0.05), meaning
that internal control is able to moderate the effect of
organizational justice on fraud, so that H2 is accepted. An
organization with good internal control will be able to detect
fraud within the organization. Cheating can be done by
employees within the organization who feel that they are being
treated unfairly within the organization. Such perceived injustice
will encourage employees to commit fraud. But with good
internal control in an organization, the cheating will be able to be
detected and can be avoided. The role of organizational justice in
reducing fraud will increase as companies have good internal
control. Well-managed internal control within an organization
will create a fair atmosphere for every layer of employees, so
employees feel satisfied and comfortable working, and will not be
motivated to commit accounting fraud. Puspitadewi and Irwandi
(2012) stated that employee motivation to commit fraud, mostly
occurs when there are two impulses, namely the low perceptions
of organizational justice perceived, and the opportunity to
commit fraud. In addition, in situations where organizational
justice perceptions are low will lead to high employee fraud, and
if the quality of the company's internal controls is also bad in the
situation, employee chances of fraud increase
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CLOSING
Conclusion
Based on the results of data analysis has been done, it can be
submitted conclusion of research results as follows:
a. Organizational justice negatively affects fraud with a
significance value of 0.021. This means that the higher the higher
the fairness that employees gain in their organization then
cheating will be avoided.
b. Internal control moderates the effect of organizational justice
on fraud with a significance value of 0.027.
Suggestion
Suggestions that can be submitted for the next research is the
next research can use other variables, such as leadership style,
employee integrity, individual morality, and others. This research
is also expected to give implication for organization to give fair
behavior for every employee so that employees intention to do
fraud can be avoided. The organization is also expected to have
good internal controls in order to avoid the occurrence of fraud
that can be done by employees.
Reference
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12. Hwei, She. dan Santosa, T. Elisabeth Cintya. 2012. Pengaruh

Keadilan Prosedural dan Keadilan Distributif terhadap
Komitmen Organisasi. Jurnal Dinamika Ekonomi dan Bisnis.
Vol: 9 No: 2. Hal: 37-52.
13. Peraturan Pemerintah No 60 Tahun 2008 tentang Sistem
Pengendalian Intern Pemerintah.
14. Pristiyanti, Ika Ruly. 2012. Persepsi Pegawai Instansi
Pemerintah mengenai Faktor-Faktor yang Mempengaruhi
Fraud di Sektor Pemerintahan. Accounting Analysis Journal.
Vol: 1. No: 1. Hal: 1-14.
15. Puspitadewi, Paramita dan Irwandi, Soni Agus. 2012.
Hubungan Keadilan Organisasional dan Kecurangan Pegawai
dengan Moderating Kualitas Pengendalian Internal. The
Indonesian Accounting Review. Vol: 2. No: 2. Hal: 159-172.
16. Putri, Ananda Aprishella P.A. 2014. Pengaruh Keefektifan
Pengendalian Internal dan Kepuasan Kerja terhadap
Kecenderungan Kecurangan Akuntansi pada Dinas
Pendapatan Pengeloelaan Keuangan Aset Daerah Istimewa
Yogyakarta. Jurnal Nominal. Vol: 3. No: 1. Hal: 61-74.
17. Setiawan, Made Dwi. Adiputra. dan Yuniarta, Gede Adi.2015.
Pengaruh Sistem Pengendalian Internal, Asimetri Informasi,
dan Keadilan Organisasi terhadap Kecurangan (Fraud). E-
journal S1 Akuntansi Universitas Pendidikan Ganesha. Vol: 3.
No: 1. Hal: 1-8.
18. Sofia, Irma Paramita. 2014. Persepsi Auditor Internal dan
Eksternal Mengenai Efektivitas Metode Pendeteksian dan
Pencegahan Tindakan Kecurangan Keuangan. Economics &
Business Research Festival. Vol: 3. Hal: 1260-1276.
19. Udayani, A.A. K. Finty dan Sari, Maria M. Ratna. 2017.
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THE EFFECT OF SERVICE QUALITY TOWARD CUSTOMERS’

LOYALTY ON 707 BEACHBERM RESTAURANTS, BATUBELIG,
BALI
A Study on the Customers of 707 Beachberm Restaurant,
Batubelig, Bali
Ni Made Hartini1
Ni PutuAyuSintyaMarantika Sari2
TriatmaMulya School of Economics, Badung - Bali
E-mail: madehartini82@gmail.com
Abstract
This study aims to know and analyze the effect of service quality
(tangibles, reliability, responsiveness, assurance, and empathy) toward
customers’ loyalty at 707 Baechnerm Restaurant, Batubelig, Bali.The
data collection technique in this study is purposive sampling with
certain aims and consideration on the criteria of customers visiting 707
Beachberm Restaurant, Batubelig, Bali.There are 100 customers
determined as the respondents of the study. The research results show
that through regression equation, service quality affects the customers’
loyalty on the aspect of tangibles which is equal to 0,003;reliability is
0.014; responsiveness is 0.721; assurance is 0.044; and empathy is
0.216.This means that service quality has a positive and significant
effect toward the customers’ loyalty at 707 BeachbermRestaurant,
Batubelig, Bali.The value of Fcalculated obtained is 148,850, while Ftableis
3,089. Thus Fcalculatedisgreater than Ftabel meaning that Ho is rejected and
Ha is accepted.This means that it is proved that there is a simultaneous
positive effect of service quality toward customers’ loyalty.
Keywords: Service Quality, Customer Loyalty
Introduction
Tourism growth nowadays has a great increase as there

are so many foreign and domestic tourists spending their holidays
in certain places to exhaust their boredom as well as wishing their
existence to be sighted in the social media that is by spending
holidays in unique places different from the usual ones.
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Bali is one of the favorite tourism destinations for

international and domestic tourists for them to enjoy the beaches
and cultures which are still very classical and religious. Bali island
is popularly called the island of thousand temples or the gods’
island as there are many temples and arched entrance pillars
decorating the island as well as its friendly and simple local people.
It is not surprising that many international tourists visiting the
island merely to enjoy the enchantment of beautiful sunset and the
heat of the sun rays suitable for the guests to suntan on the beach.
This interests the local people to open restaurants on the beach
sides which have a relaxed nuance for the guests to ease their
fatigued mind.
The 707 Beachbermrestaurant, Batubelig, Bali is an
informal restaurant having beach views and relaxed atmosphere to
pamper the guests or clients who are enjoying their holidays in
Bali. The 707 Beachberm Restaurant, Batubelig, Bali was
established on 7th July 2013. The customers’ loyalty is viewed as
strong relation between someone’s relative attitude and repeated
business. The service quality is basically the services provided by
the company to its customers accompanied by professional efforts
to provide satisfying services to the customers.
The number of customers in 707 Beachberm Restaurant,
Batubelig, Bali in 2017 is as follows.
Table 2.The Number of customers visiting 707

BeachbermBatubelig Restaurant, Batubelig, Bali in
2017.
NO MONTH NUMBER OF CUSTOMERS

1. January 3.100
2. February 2.800
3. March 3.100
4. April 3.000
5. May 3.100
6. June 3.000
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7. July 3.750
8. August 4.000
9. September 3.000
10. October 3.100
11. November 3.000
12. December 3.560
Total Number 36.500
of Customers
Source : 707 Beachbermrestaurant
management,Batubelig, Bali
Based on table 1.2, the total customers visited 707 Beachberm
Restaurant Batubelig, Bali, in 2017 was very fluctuated each month.
The highest visit happened on July and August as many as 3,750 and
4,000 customers. July and August are called high season months
because there are school holiday and work holiday seasons for the
domestic and international tourists on those months. In December, the
total customer visit was 3.560 persons because in December there are
Christmas and New Year celebrations. Based on the background
described above, therefore, the research questions of this research are
as follows: (1) Is there any tangible effect toward customer loyalty at
707 Beachberm Restaurant, Batubelig, Bali?, (2) Is there any reliability
effect toward customer loyalty at 707 Beachberm Restaurant,
Batubelig, Bali?, (3) Is there any responsiveness effect toward customer
loyalty at 707 Beachberm Restaurant, Batubelig, Bali?, (4) Is there any
assurance effect toward customer loyalty at 707 Beachberm
Restaurant, Batubelig, Bali?, (5) Is there any empathy effect toward
customer loyalty at 707 Beachberm Restaurant, Batubelig, Bali?, (6)
Does service quality affect simultaneously toward customer loyalty at
707 Beachberm Restaurant, Batubelig, Bali?.
2. Literature Study
a. Definition of Service Quality
According to Supranto (2010), Service Quality is a term which is seen
by service providers as something that must be done well, while service
definition according to Gronroos (2004) is an intangible activity or a
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series of intangible activities which occurs as the result of an

interaction between a guest and a staff or other things which is
provided by the service provider company with the purpose of solving
consumer/guest problem. Service is a very important factor especially
for a company which operates on the service sector, in which, the
physical of the product is usually supported by various product initials.
The core of the product stated above is usually a specific service.
Therefore, it is important to understand theoretically about the
limitations, definitions, and factors which affect the service itself.
The Service Quality Dimensions (SERVQUAL). Some of the
SERVQUAL dimensions are (Lupioadi, 2004):
1). The idea of tangibles is a company ability in showing its
existence toward external parties. The appearance and ability of
physical facilities and infrastructures of the company and the
condition of surrounding environments are the tangible forms of
the service given by the service provider which cover physical
facilities (building, warehouse, and others), equipment which is
used (technology), and also the staffs appearance.
2). Reliability is the company ability to deliver the appropriate
service as promised accurately and reliably. The performance must
be able to meet the expectation of the guest which covers
punctuality, equal service to all the guests without making a
mistake, sympathy attitude, and with a high accuracy.
3). Responsiveness is the ability to help and give a responsive and
accurate service toward the guest by delivering a clear information.
4). Assurance is the knowledge, politeness, and ability of the
company staffs to develop the trust of the guests toward the
company. It consists of some components such as communication,
credibility, security, competency, and politeness.
5). Empathy is giving a sincere attention individually or privately
toward the guest by trying to understand the needs of the guest. A
company is expected to have an understanding and knowledge
about the guest, understanding the needs of the guest specifically,
and to have a comfortable operation time for the guest.
b. Definition of Customer Loyalty
1). According to Tjiptono (2008), loyalty is a situation in which the
customer behaves positively toward a product or producer (service
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provider) which is followed by a consistent repurchasing pattern.

Loyalty is an old term which is traditionally has been used to define
an enthusiastic faithfulness and devotion toward the country,
ideals, and individual. In the recent business context, the loyalty
term has been used to define the willingness of the customer to
become a constant customer of a company in the long term by
purchasing and using the goods and the service continuously, and
even far better, exclusively and voluntarily recommends the product
of the company to his/her friends and colleges (Lovelock and
Wright, 2007).
b. Definition of Customer
The customer is the person who buys a product that has been created
and marketed by a company, where this person not only once
purchased the product but also repeatedly.
According to Dick (2005), customer loyalty is customer commitment
to a brand or company, based on a very positive attitude and reflected
in consistent repeatedly purchases.
From the description above it can be concluded that customer
loyalty is a strong commitment of customers to a brand where the
customers give the loyalty to the company because the product / service
of the company has provided something value to the customers. The
value that customers get from the company’s product / service will
affect the attitude or behavior of the customers to a product / service in
the future. The company will pay attention to those three attitudes and
characteristics of the customers to be able to get loyal customers and
defend from the threat of competitors.
Furthermore Griffin (2005) says that the benefits of the company with
a loyal customer are to:
1) Reduce marketing costs (because entry cost to attract new customers
is more expensive)
2) Reduce transaction costs (such as contract negotiation cost, order
processing etc).
3) Reduce customer turnover costs (due to fewer customer turnover)
4) Increase cross selling that will enlarge the company's market share.
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5) refer to a more positive word of mouth with the assumption that

loyal customers also means they are satisfied.
Indicators of customer loyalty by Kotler and Keller (2010) are Repeat
Purchase (loyalty to the purchase of the product), Retention (resistance
to negative influence of the company), Referalls (referring to the total
existence of the company).
c. Hypothesis
Based on the description of theory and framework, the
researcher formulates the hypothesis as follows:
H1: The physical evidence (tangible) has a positive effect toward
customer loyalty.
H2: Reliability (reliability) has a positive affect toward customer
loyalty.
H3: Responsiveness has a positive affect toward customer loyalty.
H4: Assurance has a positive affect toward customer loyalty.
H5: Concern (empathy) has a positive effect toward customer loyalty.
H6: Service quality has a positive affect simultaneously toward
customer loyalty.
3. Research Methods
This study is a correlational research that attempts to see whether
between two or more variables have a relationship or not, and how big
if there is a relationship, and how the direction of the relationship
(Faenkel and Walen, 2008). The definable variable consists of 2 (two)
kinds, namely:
1) Independent variable is a variable that affects the dependent
variable symbolized by (X). The independent variables in this study are
service quality consisting of tangibles (X1), reliability (X2),
responsiveness (X3), assurance (X4), empathy (X5).
2) Dependent variable is variable influenced by independent variable
symbolized by (Y). In this study the dependent variable is loyalty (Y).
The data used in this study are quantitative and qualitative
data. The data source of this study are primary and secondary data.
The data collection procedure of this study is through the distribution
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of questionnaires and documentation of the respondents. The number

of samples in this study are 100 respondents. In order to process and
analyze data,this study uses SPSS (Statistical Package for Social
Science) version 21.0 for Windows with quantitative descriptive
analysis, validity and reliability test, classical assumption test
(normality test, multicollinearity test, heteroscedasticity test),
regression test linear multiple, and t test and f test.
4. Results and Discussion
Based on the characteristics of respondents by sex where
respondents are customers or consumers of Restaurant 707 Beachberm
Batubelig, Bali who are visiting the restaurant to enjoy food and drinks.
Male respondents are 56 people or 56% and the female are 44 people or
44%. Characteristics of respondents by age, most of the respondents or
customers in Restaurant 707 Beachberm Batubelig, Bali aged 17-22
years are 18 people or 18%, 23-28 years respondents are 38 people
(38%), 29-34 years respondents are 17 people or 17%, and > 35 years
are 27 people or 27%.
Based on the characteristics of respondents by occupation in which the
type of job can show the diversity of views of respondents in
interpreting and understanding each of item statement submitted in
the assessment questionnaire. The majority of respondents who were
visiting 707 Becahberm, Batubelig Restaurant, Bali work as
entrepreneurs, consisting of 46 people or 46%, followed by respondents
who work as employees consisted of 39 people or 39% and 15
respondents or 15% work as students . The test results of validity of
research instrument shows that 20 items of statement submitted to the
respondents through questionnaire are declared valid. This can be seen
from the correlation value of each item statement with a positive value
and magnitude more or equal to 0.3. The results of reliability test
instrument shows that the value of coefficient Cronbach's Alpha of all
research variables is more than 0.60. So it can be stated reliable. The
normality test of the data shows Asymp value. Sig tangibles variable,
reliability, responsiveness, assurance, empathy, and customer loyalty is
greater than 0.05 means that the data distribution in this study is
normal. The multicollinearity test results reveal that the Tolerance and
VIF values of all independent variables have a value of <10. This
meansthatmulticollinearity in this research variabledoes not occur. In
the heteroscedasticity image, it can be seen that the points do not form
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a clear pattern and spread above and below the numberof 0 on the Y
axis. So it can be concluded that there is no heteroscedasticity. The
above regression equation can be interpreted as follows:
a. The constant of 0.071 means that if there is no change in the value of
the independent variables namely Tangibles, Reliability,
Responsiveness, Assurance, and Empathy,customerloyalty as the
dependent variable will remain constant at 0.071.
b. TheX1 coefficient of regression of 0.003 shows that tangibles
positively affects customer loyalty at 707 Beachberm Restaurant,
Batubelig, Bali
c. The X2 regression coefficient of 0.014 shows that reliability has a
positive effect on customer loyalty at 707 Beachberm Restaurant,
Batubelig, Bali
d. TheX3 regression coefficient of 0.721, shows that responsiveness has
a positive effect on customer loyalty at 707 Beachberm Restaurant,
Batubelig, Bali
e. TheX4 regression coefficient of 0,044, shows that the assurance has
a positive effect on customer loyalty at 707 Beachberm Restaurant
Batubelig, Bali
f. TheX5Regression coefficient of 0.216, indicates that empathy has a
positive effect on customer loyalty at 707 Beachberm Restaurant,
Batubelig, Bali
To test the truth of the regression model for each variable can be
obtained partially by using t test. The following description will explain
the test of each variable partially:
1. Tangibles Variable
The results obtained shows that value for tangibles variable show the
value of
t calculated of 0.037 smaller than the value of t table of 1.661 (0.037 <1.661),
so the decision is to accept the null hypothesis (H0) and reject the
alternative hypothesis (Ha), this means that there is no partial effect of
tangibles variable (X1) toward customer loyalty (Y).
2. ReliabilityVariable
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The test results shows thatt value for the reliability variable present
the value of
t calculated of 0.168 smaller than the value of ttable of 1.661 (0.168 <1.661)
then the decision to accept the null hypothesis (H0) and reject the
alternative hypothesis (Ha), this means that there is no partial effect of
reliability variable (X2) toward customer loyalty (Y).
3. Responsiveness Variable
The results obtained show that t value for the responsiveness variable
shows the value of t calculated of 7.958 is greater than the value of t table of
1.661 (7.958> 1.661) then the decision is to reject the null hypothesis
(H0) and accept the alternative hypothesis (Ha), this means that there
is a partial effectof reliability variables (X3) toward customer loyalty
(Y).
4. AssuranceVariable
The test results show that t value for the assurance variable shows the
value of
t calculated of 1.267 smaller than the t table value of 1.661 (1,267 <1.661)
then the decision is to accept the zero hypothesis (H0) and reject the
alternative hypothesis (Ha), this means that there is no partial effectof
reliability variables (X4) toward customer loyalty (Y).
5. Empathy Variable
Based on the test results, t value obtained for the responsiveness
variable shows the value of t calculated of 2.288 greater than the value of t
table of 1.661 (2.288> 1.661) then the decision rejects the null hypothesis
(H0) and accept the alternative hypothesis (Ha), this means there is a
partial effect of reliability variables (X5) toward customer loyalty (Y).
F-test is used to test the positive effect between service quality to
customer loyalty simultaneously and significantly at 707 Beachberm
Restaurant Batubelig, Bali. The steps are:
1. Hypothesis Formulation
Ho: ß = 0 It means that there is no simultaneous and
significant positive effect of service quality toward
service loyalty at 707 Beachberm Restaurant,
Batubelig, Bali
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Ha: ß ≠ 0 There is a positive effect simultaneously and

significantly service quality toward customer
loyalty at 707 Beachberm Restaurant Batubelig,
Bali.
By using SPSS version 21 the result shows the value of Fcalculated is
148,850.
5. Conclusion and Suggestion
a. Conclusion
The discussion on this research can be summarized as follows:
1). Variable of tangibles (X1) has a regression coefficient of
0,003 (marked positive) on customer loyalty (Y) and tcalculated of
0,037 with significance level of 0,970 (> 0,05). This means
that the building, interior, facilities, employee appearance,
cleanliness, and convenience in variable of tangibles (X1) has
no positive effect toward customer loyalty (Y). Thus,
hypothesis 1 which states that tangibles variable (X1) has no
positive effect toward customer loyalty (Y) is rejected.
2).Reliability variable (X2) has a regression coefficient of 0,015
(marked positive) to customer loyalty (Y) and tcalculated of 0,168
with signification level of 0,867 (> 0,05). This means that
service in reliability (X2) does not positively affect customer
loyalty (Y). Thus, hypothesis 2 which states that reliability
(X2) has no positive effect toward customer loyalty (Y) is
rejected.
3). Responsiveness variable (X3) has a regression coefficient of
0,734 (marked positive) on customer loyalty (Y) and tcalculated of
7,958 with signification level of 0,000 (<0,05). This means
that the responsiveness and speed of employees in
responsiveness (X3) have a positive effect toward customer
loyalty (Y). Thus, hypothesis 3 which states that
responsiveness (X3) has a positive effect toward customer
loyalty (Y) is accepted.
4). The result of analysis shows that assurance variable (X4)
has a regression coefficient of 0,044 (marked positive) to
customer loyalty (Y) and tcalculated of 1,267 with significance
level of 0,208 (> 0,05). This means that hospitality, need
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fulfillment and security assurance (X4) has no positive effect

toward customer loyalty (Y). Thus, hypothesis 4 which states
that assurance (X4) has no positive effect toward customer
loyalty (Y) is rejected.
5). The analysis result obtained is that empathy variable (X5)
has a regression coefficient of 0, 214 (marked positive) to
customer loyalty (Y) and tcalculated of 2,288 with significance
level of 0,024 (<0,05). This means that service, desire and
good communication in empathy (X5) have a positive effect
toward customer loyalty (Y). Thus, hypothesis 5 which states
that empathy (X5) has positive effect toward customer loyalty
(Y) is accepted.
6). Based on the value of Fcalculatedof 148,850, while Ftable of 3,089
thus Fcalculatedis larger than Ftable means Ho is rejected, then Ha
is accepted. This means that it is true there is a simultaneous
positive effect of the quality of service toward customer
loyalty.
b. Suggestion
Based on the result of the analysis that has been done in this
study, the suggestions are put forward as follows.
1). From the analysis result obtained, the most dominant
variables affecting customer loyalty are responsiveness and
empathy variables. So 707 Beachberm Restaurant Batubelig,
Bali needs to innovate or improve and maintain good
communication with guests such as greeting the guests,
providing a service that appreciates the arriving guests with a
warm smile and good knowledge in serving the customers need
during their visit at 707 Beachberm Restaurant Batubelig,
Bali. It will make the customers feel more satisfied and want to
visit 707 Beachberm Restaurant Batubelig, Bali for the
umpteenth time.
2). In the analysis, tangibles, reliability, and assurance variables
partially do not affect the customer loyalty at 707 Beachberm
Restaurant Batubelig, Bali, but the above variables are more
concerned with the quality of services, so customer loyalty
increases and it is suggested that the restaurant keep
providing the excellent service, maintain cleanliness, complete
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the incomplete facilities, keep the good appearance of the

employees in order to look neat and clean. Because it will make
the customers more satisfied to visit 707 Beachberm
Restaurant Batubelig, Bali.
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TOURISM IMPACT AND COMMUNITY QUALITY OF

LIFE
(CASE PERERENAN VILLAGE, BALI)
Putu Sucita Yanthy1, Ni Nyoman Sri Aryanti2, Made Sofia Wijaya3
Diploma IV program,Travel and Tourism Industry program
Faculty of Tourism, Udayana University,Bali, Indonesia
Email : putusucita@unud.ac.id
Abstracts
This article is a study of impact and quality of life community of
Pererenan Village that influenced by the development of villa in
this area. The study involved 155 respondents that affiliated and
not affiliated with tourism. The qualitative method is applied in
this study by using Nvivo 12 word frequency query to analysed
the words perceived of community in impact and quality of life.
The result of word frequency query on impact of tourism in this
area is tourism increasing the economic life situation,
opportunity to get the better job and culture preservation. The
result of word query frequency on quality of life is the job
opportunities, economic life and harmonious relationship with
the family.
Key words: villa, impact, quality of life
Introduction
Pererenan Village has a beautiful beach and a perfect
recreation destinantion for domestic and foreign tourists.
Pererenan Beach has a natural beach, which can be accessed
through Canggu and Tanah lot. Pererenan Beach is a paradise for
surfer. The Beach waves suitable for surfing which targeted by
tourists to visit this beach. The visitors are local and nearby as
well as making Pererenan Beach a favorite tourist spot on
weekends. The natural nuance of calm and peaceful beaches of
Pererenan is indeed quite special for tourists who need a peaceful
nuance of nature and more privacy. This beach is indeed minimal
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shelter in the absence of shade trees on the beach or rented beach

umbrellas such as in Kuta and Legian, making visitors during the
day more enjoyed by those who surf or foreign tourists who want
to sunbathe, so for domestic tourists or local residents who are
worried about being burnt, the best time is to visit during the
afternoon, while enjoying the beauty of the sunset. Quoting from
the Bali Surf Waves website, Pererenan beach is said to have a
700-meter coastline and is visited by tourists during the holiday
season
Pererenan beach is a beautiful beach with the black sand
stretch 700 meters along the coastal with the stunning
scenery to the Indian Ocean. It is a famous beach where is
many visited by the tourists on holiday season meanwhile
many surfers visit this beach in dry season for surfing
adventures. Pererenan beach is a famous beach with a great
and powerful waves that makes it as the favorite surf spot in
Bali Island. There are two surf spots available at this surf
point with powerful, fast and barrel waves that make this
Beach as one of the best surf Spots in Bali island. It is
blessed by the breathtaking view and spectacular sunset at
the late afternoon that creates the romantic nuance cover
the entire coastal area and makes all visitors to enjoy for
stay longer. This place is also a perfect place for the
recreation with huge black sand where the visitors can do
relax and enjoy the fresh air of the sea breeze (Bali Surf
Wave, 2013)
Another attraction that is more special than this beach is
the sunset or sunset treats, the moments and twilight days were
chosen by many visitors to enjoy the beauty of Pererenan beach,
the combination of sunset plus a new icon that is the attraction of
the beach is the Mina Elephant Statue. A 12-meter-tall statue
above a rocky chunk, a beautiful statue named Gajah Mina is
ridden by a statue of Dewa Baruna which is a symbol of the ruler
of the sea, so that by building the statue, besides adding its
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beauty can become an icon of tourism for the Pererenan beach

and easier to remember (Picture 1.)
Picture 1. Mina Statue an Icon of Pererenan Beach

Source: Research Documentation
On the coast area there are stalls that offer fresh drinks
such as young coconut water and various types of soft drinks that
are very easy to get in this area. A Combe car is also modified as a
stall, besides selling food and drinks this car is also equipped with
information about surfing activities.
Tourists who visit this beach give positive comments about
the beaches of Pererenan, Pantai Pererenan is indeed very close
to Canggu, sometimes even considered the same, but the
atmosphere of Pererenan Beach which is not as crowded as
Canggu Beach gives a different impression for tourists so they
can feel comfortable and can enjoy the beach atmosphere they
want. Other activities besides visiting the beach are tourists can
try riding activities which since 2005 have been in the village of
Pererenan, although this business does not belong to the village
but this activity also has its own charm. As shown below, tourists
are riding across the village road, tourists are accompanied so
that the horse stays calm while going around the village.
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The growth of villas in Pererenan Village is also influenced

the growth of businesses by investors and the community,
including rented house businesses totaling 35 units, 7 SPA, 2
Cafes, 2 massage house, and 2 hotels and 26 restaurants. There
are restaurants that serve local food as well as creations from the
restaurant owner, some names will appear if searches are made
on tripadvisor pages, namely Beer E Piza, Othree Beach Bar,
Padi Padi and Premier Surf Resto and Bar. A variety of dishes
are served, one of them is Premier Surf Resto restaurant which
serves a lot of healthy food menus. The Jawa Pos 2017 coverage
known to the owner of the restaurant is Rai Suandana, a
combination of accommodation that carries this surfing theme
into a potential market for the coastal area of Pererenan. Other
supporting facilities such as surfing tours, surfing classes and
surf camps. The building also features surfing ornaments so that
it has a distinctive impression for tourists who stay. For food is
very interesting and colorful, low in calories and of course healthy
and energetic. Fruit combination (avocado, young coconut,
banana, etc.) and grains (granolla, chia seed) (Picture.2)
Picture 2. The menus at Premier Surf Restaurant

Source : Research Documentation 2018
Theoritical Review
Tourism development in this region is inseparable from the
influence of the development of other regions that have beaches
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as tourist attractions. A positive tourism contribution is always a

hope for the people of tourism destinations but tourism does not
only contribute positively but negatively, which is varied by the
community. The contribution of tourism that can clearly be felt
by the community is the impact. The impact of tourism is the
most perceived destination is the development of the economy.
The economic development in question is an increase in the
standard of living of local people so that they are able to invest
well. Increasing the standard of living of a destination community
means that the overall improvement of the quality of life of the
community is marked by the provision of educational facilities
and health services.
The positive contribution of tourism is felt by the
community in particular so that not a few Balinese people have
investments in a number of tourism industries. Besides tourism
investors also open opportunities for people to invest, especially
in the property sector. One of them is the development of the
tourism accommodation sector, namely Villa. The increase in the
number of villas in the village of Pererenan has had an impact on
people's lives in terms of its development. Wall and Mathieson
(2006) state that one of the characteristics of the impact of
tourism is its dynamic and volatile nature. Kreag (2001)
categorizes the impact of tourism in general into seven types of
impacts namely economic, environmental, social and cultural,
congestion and noise, services, taxes and public attitudes. In each
category there are positive and negative ones, according to Kreag,
not all impacts can be found equally at a destination due to
different conditions of the destination.
The impact of tourism has a huge influence on the quality of
life of the people, this is revealed from the results of a study
conducted by Kim 2002 which analyzed the relationship between
aspects of life and the impact of tourism, the findings are the
impact of tourism that the population affects the welfare and
quality of life of the population in various aspects of life. this also
depends very much on the life cycle of the destination. The
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quality of life of the community is related to the impact of

tourism. Manap et al (2011) asserted that the community views
tourism as having a positive or negative impact but when the
perceived impact of tourism is associated with their life
satisfaction.
Andrews and Withey, 1976; Campbell et al., 1976; Diener,
1984 in (Lee et al 2005: 2) states that the theory of Bottom up
spillover is a model that connects between aspects of individual
life and quality of life. This theory states that individual quality
of life has an influence on the quality of life as a whole.
Techatassanasoontorn, Tanvisuth (2008: 8) Spillover theories in
quality of life have two views: Bottom-up (vertical) and spillover
(Horizontal). Bottom-up spillover theory shows the relationship
between satisfaction in various aspects of life and life satisfaction
globally. In particular, the theory builds two understandings: (1)
overall life satisfaction is a function of satisfaction in various
aspects of life (for example, family, health, work, education), and
(2) Satisfaction in certain aspects of life is a function of various
events and perceived experience related to this aspect of life.
Basically, the Spillover Bottom-up theory is related to events and
experiences that affect each aspect of life and spread vertically to
determine the highest life satisfaction, namely overall life
satisfaction.
Horizontal Spillover Theory shows that satisfaction and
dissatisfaction in a person's life against one aspect of life will
affect other aspects of life. For example, experience in utilizing
free time will affect aspects of one's work life where stress levels
fall. Maslow's (1970) hierarchy theoretically describes the effects
of horizontal spillover. Seven human needs from the highest to
the lowest needs include biological needs (for example, food,
water, oxygen), security needs (physical and psychological
security), social needs (for example, relationships, friendship,
family), self-esteem needs (for example, success needs ,
achievement, recognition, respect) Cognitive needs (for example,
need for knowledge, meaning), aesthetics (for example,
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appreciation of beauty, balance, form), and self-actualization (for

example, need for creativity, self-expression, integrity)
Techatassanasoontorn, Tanvisuth ( 2008: 9).
The impact and quality of life of the community became the
focus of this study which emphasized the impact factors and
quality of life factors felt by Pererenan villagers as an influence of
the development of tourism, especially the villa.
Methodology
The aims of this study is to examine the impact and quality
of life of Pererenan community. Because of the nature of the
research topic, therefore the qualitative approach is adopted in
this study. The data collection is performed using quitionaire that
distribute to 155 respondents. The qualitative data analysis is
performed using Nvivo 12 as the qualitative analysis software by
Qualitative Software Research International. The advantages in
using this anaysis is to ease manage the data, query the data and
vizualize the data (Bazely and Jacson, 2013). All the written
perception of respondents are examining and classifying by word
frequency query to capture the perceived factor of tourism impact
and community quality of life.
Discussion
The impact of villa development in Pererenan Village
The data is gathered by distribute 155 quitionaire that
question about the community perceived on impact and quality of
life. Of the 155 respondents 80 percent said they were working in
the tourism sector, 64.5 percent of the respondents were men and
35.5 percent were women.The words frequency table is shown in
Table 1 of the study is complete using the words frequency
function in Nvivo 12 as tools of qualitative data analysis. The
search results with the word frequency query feature of the
NVIVO 12 QSR software from the results of interviews to the
respondents regarding the impact of villa developments in
Pererenan village show that the word most frequently mentioned
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by the respondents refers to the impact of 'economy' 6.10 percent,

followed by the word 'field' 4, 07 percent and 'culture' 4.73
percent.
Tabel.1The most frequenlty used words on impct perceived of
community Pererenan (Word frequency query)
Percentage
No Word Length Count
(%)
1 ekonomi 7 36 6,10
2 lapangan 8 24 4,07
3 budaya 6 22 3,73
4 pekerjaan 9 21 3,56
5 lingkungan 10 18 3,05
6 kerja 5 17 2,88
7 villa 5 16 2,71
8 masyarakat 10 15 2,54
9 peluang 7 14 2,37
10 asing 5 12 2,03
Source: Nvivo 12 Word Frequency Query
The table reveals that the community perceived in the
impact of villa development can be understood as an economic
impact and cultural impact because the three words that are
often mentioned by the community are economic, field and
culture. Shodhnganga (2010) Tourism can change the economic
structure of a destination. These changes can have a positive or
negative impact. The positive impact is the source of income for
the local population, the creation of employment opportunities,
increasing foreign exchange, improving technology and living
standards, can increase the price of land, prices of goods and
services in tourism areas, and increase the number of hotel
accommodations. This situation is also justified because,
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according to Pererenan Village Bureau I Made Rai Yasa, the

village's economic growth is improving as seen from the
increasing number of people who are involved in tourism and
have the opportunity to work in the Villa (Interview, 5 July
2018).The following picture 3 shows Word Cloud from the 99
dominant words used in this research data source.
Picture 3. word cloud from 99 dominant words used as research

data sources.
In order to understood the results of word cloud easily,
then the text query process is needed which results are presented
in the form of a word tree. In this study, researchers want to
understand the use of the word 'economy' (Picture 4) which is the
dominant word of research data that has been collected. Based on
the information in the word tree in the image. The word
economy, is the dominant impact felt by the Pererenan Village
community in the form of employment and economic life that is
increasing both from the level of individuals, families and
villages. According to Stynes (1997) the economic impact of
tourism is an important factor in the planning and economic
development of countries, regions and communities. Economic
impact is also an important factor in marketing and decision
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making, therefore people need to understand tourism's

contribution to economic activities in the area.
Picture 4. Word tree analysis “economy”
Picture 5. Word tree analysis “field”

The next understanding is the word "field" (Picture 5) , said
the field in the picture. very closely related to reduced
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unemployment and business opportunities. The economic impact

felt by the villagers of Pererenan is a result of the presence of
foreign tourists, the popularity of the area has caused investors to
invest in building accommodation facilities such as hotels and
villas that cannot be avoided. As for the growth of
accommodation facilities, especially villas according to I Ketut
Sukarasena, it is a community opportunity to improve the
economy because of the wide open employment opportunities.
nowadays people create jobs. The type of business to support
tourism in this village continues to grow like restaurants,
transportation and even now people are venturing to build
homestays (Interview July 5, 2018).
Picture 6. Word tree analysis “culture”

Next the researchers want to understand the word "culture",
for the village community to understand the perceived cultural
impact is the increased communication and interaction with
tourists, increasing the ability to speak foreign languages and the
community can also introduce art and tradition. Brunt and
Courtney (1999: 497) stated that "tourism often contributes to
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social and cultural change rather than being the cause of such
change." This quote emphasizes that tourism is considered as a
contributor to changes in social and cultural life, not as a cause of
change. This opinion of course applies now, the development of
villas opens opportunities for community to interact with tourists
who live or visit the Pererenan Village, this causes people to have
the desire to master foreign languages.
The quality of life of the people of Pererenan Village
Based on the word query search for the quality of life of
rural communities, the word most frequently mentioned by the
community refers to the quality of life is 'work' 4.44 percent,
followed by the word 'economy' 4.20 percent and 'family' 3.95
percent. According to (Wallace, Abbot 2007: 109) Objective
indicators include income, household conditions, employment and
others, while subjective indicators tend to satisfy individuals with
various aspects of their lives. So, the results of the word query
show that the benchmark of the quality of life of community is
objective. Objectively by Lane 1996 in (Noll 2002: 10) emphasizes
more on the living conditions of a person in his environment.
Tabel.2 The most frequenlty used words on quality of life
perceived of community Pererenan (Word frequency query)
Percentage
No Word Length Count (%)
1 pekerjaan 9 18 4,44
2 ekonomi 7 17 4,20
3 keluarga 8 16 3,95
4 rukun 5 12 2,96
5 desa 4 10 2,47
6 perekonomian 12 10 2,47
7 masyarakat 10 8 1,98
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8 semakin 7 7 1,73
9 villa 5 6 1,48
10 kebahagiaan 11 5 1,23
Next word cloud from 134 words that shows the quality of
life of the community can be seen in Picture 7 below
Picture 7. word cloud from 134 dominant words used as research

data sources.
To understand the three words that show the quality of life
of the community, the same process is carried out with an
understanding of the impact, namely word tree of the three
words, namely work, economy and family.The understanding of
the word "work" here is that people get jobs caused by the
increasing number of villas in the village of Pererenan, by
working the community can meet material needs, the family
economy is considered as life standard, cansend their children to
school, and the creation of harmony in the family (Picture 8).
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Picture 8. Word tree analysis “work”

Furthermore, the understanding of the word "economy"
(Picture.9) in the quality of life of the community is the
achievement of prosperity as indicated by improved health, the
ability to send children to school and the added value is that
people can also use their free time on vacation with family.
Picture 9. Word Tree analysis “economy”
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Picture 10. Word Tree “Family”

The next understanding with the word "family" the
community is concerned about the family and attaches
importance to family happiness. This can be seen in the picture 8.
the result of this word tree shows the quality of life that leads to
subjective. Subjectively according to Schalock 1996 in Li and
Yang (2012: 373) are happiness, subjective well-being and
satisfaction. The subjective focus of QOL is one's personal
experience and perception of the quality of life. Indicators of
subjective quality of life are overall life satisfaction, satisfaction
with work, security, social welfare, family welfare, material
satisfaction and social status.
The results of Nvivo's analysis of 12 word frequency queries
showed that the tendency of the impact felt by rural communities
to be caused by the existence of the villa was the economic impact
and cultural impact. Economic impact is indicated by the
opportunity for the community to get a job to have the
opportunity to develop a business to support tourism in
Pererenan Village. The impact of culture felt by the community is
an increase in interaction and communication by the community
with tourists. 50.1 percent of the respondents stated that most of
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their interaction occurred at Villa, the beach 8.4 percent,

restaurants 7.1 percent and elsewhere 11.6 percent.
For villagers, objective welfare measures are economic
factors while subjective welfare benchmarks are family
happiness. Objectively the village community of Pererenan has
been able to meet the basic needs of its life up to the level of
social needs. If it is associated with Maslow's human need theory
in Marker and Susan (2003) when humans are in meeting the
needs of the social level, humans at this level try to create
relationships with their communities which are indicated by a
sense of belonging and encouragement to be needed by others.
Subjectively, the villagers of Pererenan showed satisfaction in the
quality of life by measuring it as family happiness. The family
happiness is satisfaction of the meets family needs such as
working to improve family welfare, satisfaction because they can
send their children to school, and satisfaction because it can
create a harmonious and happy family. This clearly shows that
the better of economic life of the community can causethe better
life in family that is shown by family happiness.
Conclution
Economic impact is the dominant impact affecting the
quality of life of the village community of Pererenan. Horizontal
spilover theory states that individuals who are satisfied with one
aspect of their lives can improve satisfaction in other aspects of
life. Achieving community economic welfare is characterized by
the ability to fulfill basic needs affecting family life because it can
create happiness and family harmony.
References
Interview
I Made Rai Yasa
I Ketut Sukarasena
www.ijmer.in 48
1. Bali Surf Wave. 2013. “Pererenan Beach”, sumber:

http://www.balisurfwaves.com/pererenanbeach/ diakses
23 Juli 2018
2. Bazely, Pat and Jackson, Kristi, 2013. “Perspective:
Qualitative Computing and Nvivo”. Qualitative Data
Analysis with Nvivo
3. Brunt, Paul, and Paul Courtney. 1999. Host perceptions
of socio-cultural impacts. Annals of Tourism Research
4. Jawa Pos. 2017. “Premier surf resto and bar tempatnya
para penggemar surfing”, sumber:
https://baliexpress.jawapos.com/read/2017/09/20/14670/pr
emier-surf-resto-and-bar-tempatnya-para-penggemar-
surfing diakses 4 Juni 2018
5. Lee, dkk, 2005. Contributing to Quality of Life: A New
Outcome Variable for Information Technology in
Ubiquitous Computing Environments
6. Li, Yang dan Xiang li, 2012. Ethnic Tourism and
resident Qality of Life dalam Handbook of tourism and
quality of life, Spinger
7. Marker, Susan. What Human Needs Are. In Beyond
Intractability, August 2003. Available
8. Noll, Herbert Heinz. 2002. Social indicator and quality
of life research:background, achievement and current
trends, Nicolai Ed: Genov
9. on
http://www.beyondintractability.org/m/human_needs.jsp
10. Shodhnganga. 2010. ECONOMIC, SOCIO-CULTURAL
AND PHYSICAL IMPACTS OF TOURISM (A Case Study
of Elephanta Caves, Matheran Hill Station, Janjira Fort
and Pali s Shri Ballaleshwar Ganesha)
http://shodhganga.inflibnet.ac.in/bitstream%20/10603/670
3/10/10_chapter%205.pdf
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11. Stynes, Daniel J. Economic Impacts of tourism, Enconves

Vol 1, Sumber :
https://msu.edu/course/prr/840/econimpact/pdf/ecimpvol1.
pdf diakses 2 Juli 2018
12. Techatassanasoontorn, A., Tanvisuth, A. (2008). "The
Bottom-up and Horizontal Spillovers of Quality of Life
from ICT Use: The Case of Community Technology
Centers," Proceedings of JAIS Theory Development
Workshop. Sprouts: Working Papers on Information
Systems, 8(18). http://sprouts.aisnet.org/8-18
13. Wallace, Calire, pamela Abbot, 2007. From Quality of life
to socila quality: relevance for work and care in europe,
Calitatea Vieth,XVIII, 1-2,p 109-123
www.ijmer.in 50
THE ANALYSIS OF THE SOUNDNESS LEVEL OF

PRAJA MUKTI CIVIL SERVANT COOPERATIVE IN
BULELENG REGENCY
I Putu Santika
Made Fandy Permana Putra
Ni Luh Sili Antari
e-mail: sili.antari@triatma-mapindo.ac.id
Bali, Indonesia
Abstract
This study aims to know the soundness level of Praja Mukti Civil
Servant Cooperative (KPN Praja Mukti) in 2014-2016 based on the
Regulation of Deputy for Supervision of the Ministry of Cooperatives
and Micro and Medium Enterprises No.06 / Per / Dep.6 / IV / 2016
concerning aspects of capital, productive asset quality, management,
liquidity, efficiency, independence and growth as well as cooperative
identity . This research is a descriptive research. The subject of this
research is KPN Praja Mukti. Data analysis techniques in this study
applies descriptive analysis method.
The results shows that the soundness level of KPN Praja Mukti
in 2014-2016 is in the fairly sound category with average score 76,06
with the following details: (1) the capital aspect mean score is 13,00 and
it is in fairly sound category; (2) the aspect of productive asset quality is
in a mean score of 15,25 and in fairly sound category; (3) management
aspect in a mean score of 13.65 and is insound category; (4) the
efficiency aspect in a mean score of 7.33 and is infairly sound category;
(5) the liquidity aspect in a mean score of 10.83 and is in fairly sound
category; (6) the aspect of independence and growth in a mean score of
8.00 and is in sound category; (7) the aspect of cooperative identity
obtains a mean score of 8,00 and is in sound category. (8) the
soundness level of KPN Praja Mukti for those 3 years (2014-2016)
obtains total scores in a sequence of 79.35; 74.50; and 74.35; and it is in
a fairly sound category.
Keywords: soundness level, civil servant cooperative
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Introduction
Cooperative as an economic institution is a collection of people to
realize the economic interests of its members, to realize welfare and
prosperity together based on the principle of cooperative which is based
on the principle of kinship that aims to promote the welfare of its
members in particular and society in general, as well as to build the
national economic order to realize a developed, fair and prosperous
society based on Pancasila (Five Principles) and the 1945 Constitution.
Similar to KPN Praja Mukti which is as a business organization
of the civil servants engaged in the business unit of savings and loans,
shops and photocopy printing. This cooperative is located at the office of
Buleleng Regent. The presence of the cooperative is intended to increase
the income of its members, especially civil servants, and improve the
quality of its members’ lives. In addition, It is also able to provide
solutions for civil servants who need funds.
KPN Praja Mukti in Buleleng Regency was established in 1974,
the number of cooperative members in 2016 was 674 people. The main
capital of KPN Praja Mukti in running the savings and loans business
activities is from the government grants of Singaraja. KPN Praja Mukti
faced with intense competition is very concerned about the soundness of
its performance to gain the trust of the community. Cooperative
soundness assessment is very important to do to determine the
condition of cooperatives in terms of the financial soundness and
management. By recognizing the soundness condition of the
cooperative, it will be a matter of consideration to formulate policies for
the development of KPN Praja Mukti, so that would realize the
management of KPN sound, effective, efficient, and professional and
create the excellent service to its members. Assessment of cooperative
soundness in accordance with the Regulation of Deputy for Supervision
of Ministry of Cooperatives and Micro and Medium Enterprises No.06 /
Per / Dep.6 / IV / 2016 is seen from seven (7) aspects, namely
capitalization aspect, productive asset quality aspect, management
aspect, efficiency aspect, liquidity aspects, aspect of independence and
growth and aspect of cooperative identity.
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Literature Review
Cooperative
According to Revrisond Baswir (2000: 2) in his book entitled
"Indonesian Cooperative", he states that in general cooperatives are
understood as associations of people who unite themselves voluntarily
to strive for the improvement of their economic welfare, through the
establishment of a democratically managed enterprise.
Based on the Indonesian Regulation Article 2 No. 25 Year 1992 about
cooperative matter, the cooperative is based on Pancasila and 1945
Constitution of Indonesia Republic and based on kinship principle.
Based on the Indonesia Regulation article 3 No. 25 Year 1992, the goals
of cooperative are promoting the members welfare in particular and
society in general and participating in the development of national
economy system to realize a society that is developed, just, and
prosperous based on Pancasila and 1945 Constitution of Indonesia
Republic. The functions and roles of cooperative are:
1. Establishing and developing the potentials and ability of the
members’ economy in particular and society in general to
increase their economic and social welfare.
2. Participating actively in increasing the life quality of the human
and society.
3. Strengthening the society economy as the basic strength and
sustainability of national economy with cooperative as the pillar.
4. Attempting to realize and develop the national economy which is
a joint effort based on the principles of kinship and economic
democracy.
Based on Indonesia Regulation Article 5 No. 25 Year 1992 about
cooperative matter, the cooperative conducts its principles as follows.
1. The cooperative membership is voluntary and opened.
2. The management is conducted democratically.
3. The share of dividend is done justly according to the amount of
the business participation of each member.
4. The share of profit is limited to the capital.
5. Independence.
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The Soundness Level of Cooperative.

The soundness of cooperative is very important matter to find out the
condition of the cooperative itself. The soundness level of cooperative is
assessed based on The Regulation of Deputy of Supervision of Ministry
of Cooperative and Micro and Medium Enterprises No.
06/Per/Dep.6/IV/2016 which assesses it from seven aspects: capital
aspect, quality of productive activa aspect, management aspect,
efficiency aspect, liquidity aspect, independence and growth aspect, and
cooperative identity aspect. There are four categories of cooperative
soundness assessment, they are:
a. Sound, in which the obtained total assessment score is 80.00 ≤ x
< 100.
b. Fairly sound, in which the obtained total assessment score is
66.00 ≤ x < 80.00.
c. In supervision, in which the obtained total assessment score is
51.00 ≤ x < 66.00.
d. In special supervision, in which the obtained total assessment
score is 0 ≤ x < 51.00.
Research Method
The research was conducted at KPN Praja Mukti in which the
researchers analyzed the financial report from 2014 to 2017. The data
source of the research were primary and secondary data sources. The
analysis technique on the data of assessment of cooperative soundness
level is based on The Regulation of Ministry of Cooperative and Micro
and Medium Enterprises No. 06/Per/Dep.6/IV/2016 which assesses it
from capital aspect, quality of productive activa aspect, management
aspect, efficiency aspect, liquidity aspect, independence and growth
aspect, and cooperative identity aspect.
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Discussion
Table I
The Summary of the Assessment of the Soundness Level of
Praja Mukti Civil Servant Cooperative2014-2016
Source: Processed Secondary Data

1) Assessment of CapitalizationAspect of KPN Praja Mukti Year
2014 – 2016.
Based on the analysis that has been done, it shows thatthe
mean score of the capitalization aspect of KPN Praja Muktifrom 2014
- 2016 is 13,00. The assessment on the capitalization aspect consists
3 (three) ratios, namely the ratio of own capital to total assets, the
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ratio of own capital to risky loans, and own capital adequacy ratio.
The result on the ratio of own capital to total assets shows that the
mean ratio from 2014 to 2016 is 55.13 with an average score of 6.00
and it is the highest score. Thus, KPN Praja Mukti reaches the
maximum performance to balance its own capital in order to
the maximum quality value.
Viewed from the ratio of own capital to risky loans it shows
that the result of the mean ratio is 61.52 with an average score of
4.00 and it is a fairly sound score. It means that the capital of KPN
Praja Mukti hasfairly good quality to guarantee the risky loansfrom
2014 to 2016. Thus, it is expected that KPN Praja Mukti can
maintain this condition and minimize the amount of risky
loanscredited for next year.
Capital adequacy ratio shows the result of the average ratio is
46.90% with the average score of 46.90 and it is the maximum score.
It means that the weighted capital of KPN Praja Mukti has excellent
quality in supporting the existence of Risk Weighted Assets (ATMR)
from 2014 to 2016.
2) Assessment of Quality Aspects of KPN Praja Mukti
Productive Assets Year 2014 - 2016
The analysis shows that the quality aspects of KPN Praja
Mukti productive assets year 2014 – 2016obtained the same score of
15.25. Assessment on the aspect of asset quality consists of 4 (four)
ratios, namely the ratio of loans volumeof the members to the volume
of loans granted, the ratio of non-performing loans to the loans
granted, the ratio of risk spares to non-performing loans, and the risk
loans ratio to the risk of the loans.
The ratio of loansvolumeof the members of the volume of
loans grantedearns the average ratio by 100% with a score of 10.00
and it is the maximum score. It means that KPN Praja Mukti has
high activities in savings and loans to the members from 2014 to
2016.
The ratio of risky loans to the loan granted shows the average
ratio of 1.46% with the average score of 4.0. In the scoring guide the
maximum value that can be reached is 5.00. A maximum score of 5.00
is obtained when the resulting ratio = 0. The lower the ratio result is,
the lower the risk of non-performing loans will be. It means that
Praja Mukti has a low level of non-performing loan risk from 2014 to
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2016 because each member has to pay directly in salary and directly
supervised as well as controlled by each treasurer of each Regional
Government Organization (OPD).
Risk spares to non-performing loans show the ratio of 240%
and 106% in 2014 and in 2016 are able to allocate the risk spares as it
is very important to cover the risks in the event of bad debts or
non-collectible loans. Judging from the risky loans of a granted loans
shows the ratio of 100% during 2014 to 2016 with an average score of
1.25. The lower the ratio is, the lower the risk of non-performing
loans that occurs. With the resulting ratio it means that KPN Praja
Mukti has a high NPL ratio between 2014 and 2016.
3) Assessment of Management Aspect of KPN Praja Mukti Year
2014 - 2016
Based on the analysis, the result shows that the average score
of the general management aspect is 2.25; the average score of the
aspects of institutional management is 3.00; the average score of the
aspects of capital management is 2.40; the average score of the asset
management aspect is 3.00; and the average score on the liquidity
management aspect is 3.00. The scores indicate that from the aspect
of management KPN Praja Mukti has been running management
well enough from 2014 to 2016; viewed from the aspect of general
management it has been running the mission vision well;the aspects
of institutional management it has been able to apply and run well its
functions / tasks as in the SOP; the aspect of capital management is
fairly good viewed from the setting spares aside in caseif there is
non-performing or non-collectible loans; theasset management
aspects are fairly good viewed from the absence of loan problems. It is
due to the board of KPN Praja Mukti has worked with every
treasurer of the Local Government Organization (OPD) of each
agency in oversighting of the loans. Finally from the aspect of
liquidity management, it is very good viewed from written policy on
liquidity control, effective administration guidelines, policy of
accumulating savings and crediting in accordance with financial
condition, adequate management information system in monitoring
liquidity.
4) Assessment of Aspects of Efficiency on Praja Mukti Civil
Servant Cooperative (KPN Praja Mukti) Year 2014 - 2016
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Based on the analysis of efficiency aspect, it shows that KPN

Praja Mukti in 2014 obtained a score of 7.00, year 2015 a score of 7,00
and in year 2016 a score of8,00 in which the mean scorefrom 2014 to
2016 is 7.33. Assessment on the efficiency aspect of KPN Praja Mukti
consists of 3 (three) ratios, namely the ratio of member operating
expenses toward gross participation, the ratio of operating expenses
to gross dividend (SHU), and service efficiency ratio.
Observed from the ratio of member operating expenses to gross
participation it shows the average ratio in 2014 - 2016 is 41.71% with
a score of 4.00 and it was the maximum score. This means that KPN
Praja Mukti has provided service efficiency to its members from the
use of assets owned. High gross participation shows that members'
contribution to cooperatives is also high and the dividend (SHU)
increases. Viewed from the ratio of operating expenses to gross
dividend (SHU) it shows that the ratio of operating expenses to gross
dividend (SHU) in 2014 - 2016 obtained an average ratio of 114.56%
with the average score is 1.33 and categorized as a low score. The
lower the resulting ratio is, the higher the dividend(SHU) gained.
This means that KPN Praja Mukti has not been able to carry out
savings and loans activities which are efficient especially in the
business expenses and the high business expensein terms of operating
expenses should be minimized, especially from the procurement of
photocopy materials so that the following year the amount of dividend
(SHU) can be improved.
The service efficiency ratio shows the efficiency ratios of KPN
Praja Mukti service during 2014 - 2016 obtaining an average ratio of
1.66% with a mean score of 2.00 and categorized as a maximum score.
The lower the resulting ratio is, the higher the score obtained. This
means that KPN Praja Muktiis great in service efficiency.
5) Assessment of Aspects of Liquidity of KPN Praja Mukti Year
2014 - 2016
Based on the analysis, it shows that on the aspect of liquidity
KPN Praja Mukti in 2014 obtained a score of 15.00, in year 2015
obtained a score of 10.00, the year 2016 it obtained a score of 7.50 and
the average was 10.83. The assessment on liquidity aspects,KPN
Praja Muktifrom 2014 to 2016 was measured by 2 (two) ratios,
namely the cash ratio, and the ratio of loans granted to the received
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funds. Viewed from the cash ratio of KPN Praja Muktifrom 2014 to
2016, the result obtained an average ratio of 16.72% with the average
score is 5.83 and categorized as fairly good. This means that the cash
ratio is considered at the sound level but needs to be improved in the
next year in terms of current liabilities such as attracting customers
to do savings at KPN Praja Mukti. Observed from the ratio of loans
given to the received funds, it shows an average of 1,192.87% with a
mean score of 5.00 and it is the maximum score.The higher the
resulting ratio is, the lower the level of loanproblem is. This means
that KPN Praja Mukti did not experience the risk of loanproblem in a
large percentage.
6) Assessment of Aspects of Independence and Growth of KPN
Praja Mukti Year 2014 - 2016
Based on the analysis, it shows that in independence aspect and
growth KPN Praja Mukti year 2014 - 2015 obtained a score of 7.75
and in year 2016 it was 8,50 with the average score from 2014 to
2016 equals to 8,00. The assessment on self-reliance and growth,KPN
Praja Mukti was measured by 3 (three) ratios, namely profitability
ratios, owned capital profitability ratio and independenceas well as
operational ratios. The ratio of profitability assets from 2014 to 2016
obtained an average ratio of 4.60% with a mean score of 1.00 which
was categorized as the lowest score. Maximum score that can be
obtained was 3.00 with a ratio of>10% based on the rules of scoring.
The higher the ratio is,the higher the profitability will be. This means
that the profitability of KPN Praja Mukti assets is in terrible
condition. It should be able to increase dividend (SHU) earnings
before taxes by maximizing revenue through members' participation
in savings and loan activities.
Viewed from the ratio of own capital profitability in the year
2014 - 2016 it obtained the average ratio of 6.63% with the average
score is 3.00 and it is the maximum score. This means the profitability
of own capital of KPN Praja Muktiis in very good condition. KPN
Praja Mukti should be able to maintain it by supervision in the
acquisition of participation of principal savings, mandatory savings,
and service transactions by its members.
Based on the observation to the ratio of independence and
operational ratio during 2014 – 2016 it shows an average of 168.6%
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with the average score obtained is 4.00 and itis the maximum score.
Operating expenses and cooperative expenses incurred are very
efficient compared to the high net participation so that it can achieve
the maximum quality. This means that the independence ratio and
service operation is considered very good.
7) Assessment of Identity aspect of KPN Praja Mukti
in2014-2016
The analysis shows that the score of identity aspect of KPN
Praja Mukti in 2014 is 7.50 and in 2015 and 2016 gets the same
score of 8.25 with the mean score from 2014 – 2016 is 8.00. The
assessment of identity is measured by 2 (two) ratios which are
gross participation ratio and member economy participation ratio.
The average ratio of gross participationobtainedfrom 2014 – 2016
is 64.53% with the average score of 5.25, which is a fairly good
score. This means that the gross participation ratio of KPN Praja
Mukti is good. It is expected that KPN Praja Mukti improve this
condition in terms of business revenue in the following years.
According to the investigation, the averageratioofmember
economic promotion from 2014 - 2016 is 11.46% with the means
score 2.75 and it is the maximum score. It means that KPN Praja
Mukti has given the benefits of participation efficiency and
cooperative cost efficiency through principle savings and
mandatory savings.
8) The assessment of soundness of KPN Praja Mukti in the
year of 2014 – 2016
The assessment result of soundness level of KPN Praja
Mukti from 2014 – 2016 can be stated that it is on theconstant
level predicatedasa fairly sound cooperative. The mean score of
KPN Praja Mukti from 2014 – 2016 is 76.06 so it is categorized as
fairly sound.
Conclusions and Suggestions
Viewed from aspect of capitalization KPN Praja Mukti from
2014 – 2016 had been capable of maximizing to balance the total asset
and minimizing the number of risk loans. The aspect of productive
active quality, viewed from the member’s loan volume, had been
capable of providing balance with the given loans; the risk of
problematic loans is able to be minimized by cooperating with the
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treasurers of local government organization (OPD) in paying the

installments. In terms of management aspect, KPN Praja Mukti has
applied every aspect of management well. Viewed from high gross
participation, the aspect of efficiency shows that the members’
contribution to the cooperative is good in which it is able to increase
gross dividend; and the ratio of operating expenses on the gross
dividend is not maximum which means that KPN Praja Mukti is not
yet able to efficiently hold savings and loans especially savings. In the
level of liquidity, KPN Praja Mukti has been able to hold savings and
loans to fulfil its short term obligation. In terms of the aspect of
independence and growth, KPN Praja Mukti has been able to serve
the people independently and there was some growth in 2014 – 2016.
In terms of identity, KPN Praja Mukti has succeeded to achieve the
goal to promote its members’ economy. Finally, the result of the
assessment on the soundness level of the entire existence of KPN
PrajaMukti from 2014 - 2016 shows that it is on the constant
condition that is categorized as fairly sound cooperative.
The suggestions of the study is that as the soundness of KPN
PrajaMukti for 3 years only on the criteria of fairly sound and and not
yet on the sound level caused by the low efficiency especially on the
ratio of operating expenses toward gross dividend and the aspect of
independence and growth especially on asset rent-ability themselves,
it should be improved in order to achieve good quality. Besides, there
need to be improvement on the quality aspects of capital, productive
active quality, efficiency, liquidity although it is already fairly good
but not maximum. The good aspects and those categorized as sound
such as management, independence, and growth as well as
cooperative independence should be maintained in the next years.
References
Arifin Sitio dan Halomoan Tamba. 2001. Koperasi Teori dan Praktek.
Jakarta: Erlangga
Suharsimi Arikunto. 2014. Prosedur Penelitian Suatu Pendekatan
Praktik. Jakarta: Rineka Cipta
Hendar. 2010. Manajemen Perusahaan Koperasi. Jakarta: Penerbit
Erlangga
Hendrojogi. 2004. Koperasi; Asas-asas, Teori, dan Praktik. Rev.ed.
Jakarta: PT Rajagrafindo Persada
www.ijmer.in 61
Omardani. 2010. Analisis Kinerja Keuangan Koperasi Primkopos pada

PT. Pos Indonesia Singaraja. Tesis. STIE Triatma Mulya Badung
Bali
Peraturan Deputi Bidang Pengawasan Kementrian Koperasi dan Usaha
Kecil dan Menengah Republik Indonesia No.6/Per/Dep.6/IV/2016
tentang pedoman penilaian kesehatan koperasi simpan pinjam
dan unit simpan pinjam koperasi.
Rohmaning Tyas. 2014. Analisis Tingkat Kesehatan Koperasi Simpan
Pinjam Mukti Bina Usaha Kelurahan Mukti Sari Kota Banjar
Jawa Barat Tahun 2011 – 2013. Falkutas Ekonomi Negeri
Yogyakarta
Rantau. 2016. Analisis Kinerja Keuangan Koperasi Simpan Pinjam
Swadaya di desa Banyuning Kecamatan Buleleng Kabupaten
Buleleng.Falkutas Ekonomi Universitas Tabanan
Revrisond Baswir. 2000. Koperasi Indonesia. Yogyakarta: BPFE
Sugiyono. 2009. Metode Penelitian Bisnis (Pendekatan Kuantitatif,
Kualitatif dan R&D). Bandung: Alfabeta
Supraptha Gede. 2016. Kesehatan Koperasi Berdasarkan Peraturan
Menteri Koperasi dan UKM No.14/Per/M.KUKM/XII/2009 (study
kasus pada koperasi Simpan Pinjam Kusuma Arta Sari Banjar
Dlodpasar Blahkiuh Abiansemal Badung Bali). Thesis. STIE
Triatma Mulya Badung Bali
Tatik Suryani,dkk. 2008. Manajemen Koperasi. Yogyakarta: Graha Ilmu
Undang-undang No. 25 Tahun 1992 tentang Koperasi
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WORKLOAD ANALYSIS OF FRONT OFFICE STAFF AT

WATER MARK HOTEL AND SPA JIMBARAN-BALI
NK Dewi Irwanti 1, M. Yusuf 2 , NP Yunik Anggreni3,

LP Sri Widiastuty4
1,3,4)
STIPAR Triatma Jaya Jl. Kubu Gunung, Dalung, Kuta – Bali,
Telp.(0361)412971/425761
2)
Teknik Mesin, Politeknik Negeri Bali, Kampus Bukit Jimbaran,
Badung, Bali. Telp (0361)701981
Email: nk_dewi_irwanti@yahoo.com ; 2) yusuf@pnb.ac.id
1)
Abstract
Front office employees at Watermark SPA & Hotel work with
standing work posture to serve guests by using a computer to input
data and find information related to customer identity the information
of room conditions. Subjective complaints arise because work is done
for 8 hours a day. To get a solution to this problem a preliminary
observational study of 6 front office employees was conducted. The
workload is determined by the working pulse measured using a pulse
meter. Subjective complaints were predicted from general fatigue and
complaints of skeletal muscles as measured by a questionnaire, while
body posture when working was assessed by the RULA score.
Statistical analysis was carried out in a quantitative descriptive
manner. The results of the study conclude that: (a) the workload of
front office employees in Watermark Hotels & Spas is included in the
medium workload category, (b) there is a significant difference in the
score of subjective complaints of front office employees at Watermark
Hotel & Spa before and after work. (c) the RULA analysis score
obtained the grand score 5 score, it is recommended that an
examination and change be immediately carried out on the work of
front office employees at Watermark Hotel & Spa, (d) Need ergonomic
interventions to reduce employee workload both objectively and
subjectively . For this reason, it is recommended that there be
improvements to work stations, proper work shift settings, and further
research.
Keywords: workload, subjective complaints, front office hotel
employees
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I. Preface
Watermark Hotel & Spa is one hotels in the Jimbaran, Nusa
Dua Bali area. This hotel is a 4 star hotel which gives top priority to the
comfort of guests during their stay. So that the hotel really provides
optimal service from the arrival of guests (check in) to the process of
returning (check out).
The employee that in charge of handling guests from check in to
check out is the Front Office section which operationally deals directly
with guests, has the responsibility to provide services to guests. The
duties are from before guests arrive or making reservations, when
checking in or registering or when checking out, making payments, and
also as a center of information about hotel products and facilities as
well as supporting information about business activities provided by
this hotel.
The employees of front office at Watermark Hotel work for 8
hours with a standing work posture to serve guests by using computers
to input data and find information related to customer identities to the
information of room conditions. Computer activity is carried out with a
standing work posture while bending, this is because of computer
display on the work table appears to be lower than the elbow height of
the employee. If it was done for a long time, this condition can interfere
with the work performance of employees which will have an impact on
the services provided. Basically standing itself is more tiring than
sitting and the energy expended to stand, 10-15% more compared to
sitting (Tarwaka 2004).
Working posture bent over a long time is an unnatural (not
normal) work posture. Work posture is not natural will cause in
harmony between humans and work stations, thus causing undesirable
things such as tend to occur work errors, less productive, and the
emergence of additional expenses to overcome the consequences of the
disruption that occurs ( Helander 2006)
Problems that often occur for employees in the front office are
complaints such as pain in the neck, arms, back, waist, legs, and feeling
fatigue quickly. The complaints are known as subjective complaints
which are divided into two categories, namely skeletal muscle
complaints and general fatigue. For this reason, it is necessary to do
solutive steps to help the employees. To make a solutive step, first
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research is conducted to examine how much workload is available for

the front office employees. Therefore this research was conducted, as
preliminary research in providing a solutive step for front office
employees.
The role of employees in Front office is very important
enhancing the image and impression of hotel service to customers.
Providing services quickly, precisely, kindly and comfortably is the
commitment of every employee at the Watermark hotel, so that
employees are required to be able to provide optimal work performance.
From an ergonomic point of view, work performance will be optimal if
supported by tasks, organization and an ergonomic work environment.
II. Materials and Methods
This study was an observational study of 6 employees of the
Water Mark Hotel & Spa in Jimbaran Bali. The workload is determined
by the working pulse measured using a pulse meter. The temperature
and humidity of the environment are measured using an environment
meter. Subjective complaints are predicted from general fatigue and
complaints of skeletal muscles. Fatigue was measured using
questionnaire, they are 30 items of exhaustion fatigue in general with
four Likert scales and complaints of skeletal muscles measured by
Nordic Body Map questionnaire, while body posture when working was
assessed by the RULA score. Statistical analysis was carried out in a
quantitative descriptive manner towards workload and subjective
complaints of employees.
III. Results and Discussion
3.1 Research Subjects
The characteristics of front office employees who as the subject of the
research, as follows :
Table 1. Characteristics of research subjects
Mean Standar Rage Deviation

Age 29,33 6,05 14,00
Weight 61,41 2,27 6,50
Height 168,25 1,92 4,50
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Body Mass 21,69 0,45 1,13

Index
Work 5,5 0,83 2,00
Experience
Mean of age of the subject was 29.33 ± 6.05 years, with a mean
work experience of 5.5 years. This shows that the subject is in
productive age and has experience working in their field. The index of
body mass is at mean of 21.69. This body mass index is in normal
conditions. The condition of this subject is still in an optimal physical
state to do work because of his productive age and good physical
condition. Age conditions affect a person's physical work ability or
muscle strength. A person's maximum physical ability is achieved
between the ages of 25-35 years and will continue to decline with age
(Kroemer and Grandjean 2009).
The results of research conducted by Choobineh showed that a
person who has an abnormal body mass index is at risk of developing
musculoskeletal complaints in the lower back area is twice higher than
people with normal body mass index ( Choobineh et al. 2007). Whereas
in other studies stated that there is a relationship between nutritional
status and body mass index with muscle complaints, in normal body
mass index conditions, muscle complaints are caused more by work
factors (Mushthofa et al. 2014).
3.2 Environmental Conditions
The work environment where the research subject works
includes conditions of temperature, relative humidity, wind speed, and
sound intensity. The results of the analysis of the measurement of
working environment conditions before and after work as in Table 2
below :
Table 2. Work Environment Conditions
No Parameter Mean SB Range

1 Dry Temperature 25,55 0,78 23,15 27,64
(° C)
2 Wet Temperature 20,93 0,55 18,47 22,94
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(° C)
3 Humidity (%) 74,65 1,59 70,17 78,49
4 Sound intensity (° 55,47 1,38 52,88 59,04
C)
5 Light intensity (° 246,80 29,55 228,75 378,82
C)
All components of the work environment as shown in Table 2

indicate that employees work in environmental conditions that are still
relatively comfortable and within the limits of normal adaptation.
Comfortable room temperature for Indonesians ranges from 22—28° C.
The effective temperature for the tropics is 22—27° C ( Soleman and
Sitania 2011). According to the Decree of the Minister of Health No.
405 / Menkes / SK / XI / 2002) the lowest NAV (NAB) for room
temperature is 18 ° C and the highest NAV( NAB) is 30 ° in air relative
humidity between 65% to 95%. Good lighting is very important, so the
job can be done properly and in a comfortable situation. In addition,
when carrying out activities can see objects clearly and quickly.
According to Dul and Weerdmeester, the amount of light intensity for
normal activities is 200-800 lux (Dul and Weerdmeester 2008). A
normal work environment will make workers work optimally with the
level of risk of interference due to a minimal work environment
(Sutjana, 2015)
3.3. The Workload
The workload of an employee can be measured based on the
working pulse ( Adiputra 2002; Kroemer and Grandjean 2009). Based
on the working pulse calculation at Table 3, it found that the breaking
pulse of Front Office employee at Watermark Hotel & Spa Jimbaran
Bali is 66,46 beat per minute, whereas the working pulse is 125,45 beat
per minute. There is a significant increasing (p<0,05) between
breaking pulse and working pulse. That working pulse is classified
medium workload. Grandjean said that the medium working pulse
workload is 120—125 beat per minute (Kroemer and Grandjean, 2009).
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Table 3. Workload Analysis Result

Variable Mean (dpm) SD t p
Breaking Pulse 66,46 4,41 -20,8
0,000
Working Pulse 120,45 6,91
The medium working pulse workload is predict because the

working position of Front Office employees are standing to serve the
customers and to type in the computer. This working position will be
easier fatigue and stress, it causes increasing pulse beat.
Decreasing that workload needed improvement referring to
Ergonomic Rules. Ergonomic intervention can decrease the employees
workload moreover it can increase their workload productivity (Yusuf
2015).
3.4. Musculoskeletal Complaints and Fatigue
The subjective employees complaints at Table 4, occurred a
significant increased (p< 0,05) improvement between before and after
working measurement in Musculoskeletal Complaint and Fatigue.
After working the Musculoskeletal complaint is often happened in
employees’ shoulders, necks and waists (66%), the illness of left and
right hands, and the illness on backs (55%) wherever the fatigue is
generally happened in body, back painful (83%) and also felt heavy on
head, cramp on legs, cramp on shoulders (50%). These complaints are
happened because of the standing working posture with back bent.
Table 4. The Analysis of Musculoskeletal Complaint

and Fatigue
Variable Avarage SD T p
score
Musculosceletal Before working 35,42 3,56 -14,18 0,000
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complaints After working 63,33 5,91

Before working 43,75 3,11
Fatigue -13,72 0,000
After working 64,51 6,04
Standing working posture with bent head for long time is not
physiology work posture. It can be happened by the characteristic of job
desk, work tools, work section, and unsuitable work posture with
inability of employee (Manuaba 2000). The standing working posture
with bent head has done for years can occur bones deviation of the
employee (Kroemer and Grandjean 2009). To solve this problem it
needs work posture improvement or new system work posture based on
Ergonomic rules.
The subjective complaint of working can be happened by work
stress. Marchelia found that there is a relationship meaning between
work stress and work fatigue controlled by age (Marchelia 2014). That
is why the employees need refreshment by changing the right shift and
convenient work environment. Ergonomic intervention can decrease
this subjective complaint (Santiana, Yusuf, and Lokantara 2018)
moreover can increase their work motivation (Sutapa et al, 2017).
3.5 The RULA Analysis
The workload evaluation also analyzed by RULA. This evaluation is
based on the employee work posture of the following picture 1.
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Picture 1.
The work posture of Front Office Employee at Watermark
Hotel & Spa Jimbaran Bali
Table 5. The Score Result of RULA Analysis
Body Group A Postur Body Group B Postur Rating

Rating
Upper arm : 1 Neck :4
Lower arm : 1 Trunk : 3
Wrist :3
Twist :2
Total :5
Grand Score : 5
further investigation, change may be needed
Using RULA analysis in picture 1 above and score result of

RULA analysis in table 1, the total score of Front Office employee
work posture of both group is 5, and the grand score is 5 with action
recommendation, they need checking and changing the work posture
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immediately. Therefore, the analysis result of workload Front Office is

recommended to review and then change it into the better one based on
the Ergonomic rules and RULA analysis. They can decrease the
workload in objectively and subjectively (Yusuf and Santiana 2014).
Irwanti, et al ( 2016) also found that the working posture improvement
with ergonomic approach and rula analysis to fatigue and
musculoskeletal complaints of hotel employee.
IV. Conclusion and Suggestion
4.1 Conclusion
The analysis result of the discussion above can be concluded as:
1. The Front Office employee workload at Watermark Hotel &
Spa Nusa Dua Bali is medium workload category.
2. There was a significant difference score of subjective
complaint of Front Office employee at Watermark Hotel and
Spa (Musculoskeletal Complaint and fatigue) before and
after working.
3. The grand score of RULA analysis is 5, it means that it
needs recommendation for reviewing and changing the work
posture of Front Office employee at Watermark Hotel and
Spa immediately based on Ergonomic rules.
4. It needs Ergonomic interventions for decreasing workland
of Front Office employee both in objectively and subjectively.
4.2 Suggestion
There are 3 suggestions for Front Office employee at Watermark
Hotel and Spa Nusa Dua Bali to decrease workload both in objectively
and subjectively. They are:
1. To repair the table for putting the computer, so that their
work posture is more natural (the head is not bent, the
wrist are not bent).
2. To manage the working system such as managing the break
by giving
Short break with sitting for 5 to 10 minutes every office
hours.
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3. It needs further research about working system

improvement of Front Office employee at Watermark Hotel
and Spa Nusa Dua Bali to give solution of subjective fatigue
employee.
V. Reference
Adiputra, N. 2002. “Denyut Nadi Dan Kegunaannya Dalam Ergonomi.”
Jurnal Ergonomi Indonesia 3(1):1–6.
Choobineh, Alireza, SayedHamidreza Tabatabaei, Marzieh Tozihian,
and Fatemeh Ghadami. 2007. “Musculoskeletal Problems among
Workers of an Iranian Communication Company.” Indian Journal
of Occupational and Environmental Medicine 11(1):32.
Dul, Jan and Bernard Weerdmeester. 2008. Ergonomics For Beginners
A Quick Reference Guide, Second Edition. 3rd ed. London: Taylor
& Francis.
Helander, Martin. 2006. A Guide to Human Factors and Ergonomics.
Vol. 51.
Irwanti, NK., Yusuf, M & Dyah, AD. Perbaikan Postur Kerja Dengan
Pendekatan Ergonomi Dan Analisis Rula Menurunkan Kelelahan
Dan Keluhan Otot Skeletal Pada Pramugraha Hotel Puri Saron.
Prosiding Seminar Nasional Perhimpunan Ergonomi Indonesia
“Sustainable Ergonomics For Better Human Well-Being”. ISBN:
978-602-8817-72-1
Kroemer, Karl H. E. and E. Grandjean. 2009. Fitting The Task To The
Human, Fifth Editione A Textbook Of Occupational Ergonomics.
London: CRC Press.
Manuaba, A. 2000. “Research and Application of Ergonomics in
Developing Countries, with Special Reference to Indonesia.”
Jurnal Ergonomi Indonesia 1(1):24–30.
Marchelia, Venny. 2014. “Stres Kerja Ditinjau Dari Shift Kerja Pada
Karyawan.” Jurnal Ilmiah Psikologi Terapan 2(1):130–43.
Mushthofa, Ahmad, As Adi, Anita Dewi, Prahastuti Sujoso, and Irma
Prasetyowati. 2014. “Hubungan Antara Karakteristik Individu
Dan Manual Material Handling Dengan Keluhan Muskuloskeletal
Akibat Kerja ( The Relationship Between Individual
Characteristics and Manual Material Handling With
www.ijmer.in 72
Musculosceletal Complaints Due To Work ).” E-Jurnal Pustaka

Kesehatan 2(2):271–76.
Santiana, M. A., M. Yusuf, and W. D. Lokantara. 2018. “Mother Chair
Reparation to Decrease Subjective Disorders in Exclusive Breast-
Feeding Period.” Journal of Physics: Conference Series 953(1).
Soleman, Aminah and D. Farida (Fakultas Teknik) Sitania. 2011.
“Pedoman Kesehatan Dan Keselamatan Kerja Pada.” Arika
05(2):125–36.
Sutapa, I. Nyoman, I. Santiana, M. Yusuf, and W. D. Lokantara. 2017.
“Ergonomic Chair Design for Nursing Mothers to Increase
Motivation of Exclusive Breastfeeding.” Journal of Advanced
Science Letters 23(12):12182–85.
Sutjana, I. D. P. 2015. “Aspek Ergonomi Dari Risiko Psikososial Di
Tempat Kerja.” Jurnal Ergonomi Indonesia 1(1).
Tarwaka. 2004. Ergonomi Untuk Keselamatan, Kesehatan Kerja Dan
Produktivitas. 1st ed. Jakarta: UNIBA Press.
Yusuf, M. 2015. “Penerapan Ergonomi Total Untuk Meningkatkan
Produktivitas Kerja Perajin Permata.” Jurnal Industrial Services
1(1):1–4.
Yusuf, M. and Anom Santiana. 2014. “Analisis Beban Kerja Mahasiswa
Praktek Di Bengkel Teknologi Mekanik Jurusan Teknik Mesin
Politeknik Negeri Bali.” Jurnal Energi Dan Manufaktur 7(2):173–
78.
www.ijmer.in 73
TORQUE VECTORING DIFFERENTIAL
Anurag Tirumala
B.Tech Final Year Mech. Engg. Student
Manipal University Jaipur
1. Introduction
Ever since the quest for reaching the highest possible speeds in
automobile industry begun, there has always been a question of
cornering at maximum speed without the loss of stability and traction
of the vehicle.Though many racers use a method of drifting by losing
the traction in the rear wheels so as to enable higher cornering speeds
there is always the risk of spinning and crashing. In order to attain the
stability during the turns the technology of differentials are being used.
1.1 What is a differential? And how it works.
It is observed that car tyres spin at different speeds during the

turns.Differential is a device that splits the engine torque to the
wheels.The drive gear 2 is mounted on the carrier 5 which supports the
planetary bevel gears 4 which engage the driven bevel gears 3 attached
to the axles.
Figure 1. Automotive differential
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In automobiles and other wheeled vehicles, the differential allows the

outer drive wheel to rotate faster than the inner drive wheel during a
turn. This is necessary when the vehicle turns, making the wheel that
is traveling around the outside of the turning curve roll farther and
faster than the other. The average of the rotational speed of the two
driving wheels equals the input rotational speed of the drive shaft. An
increase in the speed of one wheel is balanced by a decrease in the
speed of the other.
.In a differential the longitudinal input propeller shaft to the pinion,

which in turn drives the transverse ring gearof the differential. This
also works as reduction gearing. On rear wheel drive vehicles, the
differential may connect to half-shafts inside an axle housing, or drive
shafts that connect to the rear driving wheels. Front wheel drive
vehicles tend to have the engine crankshaft and the gearbox shafts
transverse, and with the pinion on the end of the main-shaft of the
gearbox and the differential enclosed in the same housing as the
gearbox. There are individual drive-shafts to each wheel. A differential
consists of one input, the drive shaft, and two outputs which are the
two drive wheels, however the rotation of the drive wheels are coupled
to each other by their connection to the roadway. Under normal
conditions, with small tire slip, the ratio of the speeds of the two
driving wheels is defined by the ratio of the radii of the paths around
which the two wheels are rolling, which in turn is determined by the
track-width of the vehicle (the distance between the driving wheels)
and the radius of the turn.
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Figure 2. The drive shaft enters from the front and the driven
axles run left and right
1.2 Different types of differential
Epicyclic differential
An epicyclic differential can use epicyclic gearing to split and

apportion torque asymmetrically between the front and rear axles. An
epicyclic differential is at the heart of the Toyota Prius automotive
drive train, where it interconnects the engine, motor-generators, and
the drive wheels (which have a second differential for splitting torque
as usual). It has the advantage of being relatively compact along the
length of its axis (that is, the sun gear shaft).
Epicyclic gears are also called planetary gears because the axes of the
planet gears revolve around the common axis of the sun and ring gears
that they mesh with and roll between. In the image, the yellow shaft
carries the sun gear which is almost hidden. The blue gears are called
planet gears and the pink gear is the ring gear or annulus Ring gears
are also used in starter motors.
Spur-gear differential
A spur-gear differential has two equal-sized spur gears, one for each
half-shaft, with a space between them. Instead of the Bevel gear, also
known as a mitre gear, assembly (the "spider") at the centre of the
differential, there is a rotating carrier on the same axis as the two
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shafts. Torque from a prime mover or transmission, such as the drive

shaft of a car, rotates this carrier.
Mounted in this carrier are one or more pairs of identical pinions,

generally longer than their diameters, and typically smaller than the
spur gears on the individual half-shafts. Each pinion pair rotates freely
on pins supported by the carrier. Furthermore, the pinion pairs are
displaced axially, such that they mesh only for the part of their length
between the two spur gears, and rotate in opposite directions. The
remaining length of a given pinion meshes with the nearer spur gear on
its axle. Therefore, each pinion couples that spur gear to the other
pinion, and in turn, the other spur gear, so that when the drive shaft
rotates the carrier, its relationship to the gears for the individual wheel
axles is the same as that in a bevel-gear differential.
A spur gear differential is constructed from two identical coaxial

epicyclic gear trains assembled with a single carrier such that their
planet gears are engaged. This forms a planetary gear train with a fixed
carrier train ratio R = -1.
Active differentials
A relatively new technology is the electronically controlled 'active

differential'. An electronic control unit (ECU) uses inputs from multiple
sensors, including yaw rate, steering input angle, and lateral
acceleration—and adjusts the distribution of torque to compensate for
undesirable handling behaviours like understeer. Active differentials
used to play a large role in the World Rally Championship, but in the
2006 season the FIA has limited the use of active differentials to only
those drivers who have not competed in the World Rally
Championship in the last five years.
Fully integrated active differentials are used on the Ferrari

F430, Mitsubishi Lancer Evolution, and on the rear wheels in
the Acura RL. A version manufactured by ZF is also being offered on
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the B8 chassis Audi S4 and Audi A4. The Volkswagen Golf GTI Mk7 in
Performance trim also has an electronically controlled front-axle
transverse differential lock, also known as VAQ.
The second constraint of the differential is passive—it is actuated by

the friction kinematics chain through the ground. The difference in
torque on the road-wheels and tires (caused by turns or bumpy ground)
drives the second degree of freedom, (overcoming the torque of inner
friction) to equalise the driving torque on the tires. The sensitivity of
the differential depends on the inner friction through the second degree
of freedom. All of the differentials (so called "active" and "passive") use
clutches and brakes (with the exception of the Sparc Drive, which uses
a servo motor and worm gear) for restricting the second degree of
freedom, so all suffer from the same disadvantage—decreased
sensitivity to a dynamically changing environment.
The sensitivity of the ECU controlled differential is also limited by the

time delay caused by sensors and the response time of the actuators.
1.3.Difference Between Torque Vector & Active Differential
Torque Vectoring is next step in Active Differential, its contribution

being that it can get power to any wheel nearly instantly without
having to use the brakes or cut power. Most current Active differentials
control wheel spin by braking a spinning wheel or cutting the power
from the engine. Torque vectoring is achieved by using redesigned
differentials that can distribute power to the wheels or wheels that
have traction. That means that wheels don’t need to be stopped, and
even better, one would not suffer from a sudden loss of power as youre
negotiating an unexpected loss in traction. Some systems in use now or
being developed work on FWD, RWD, & AWD cars and get power to
any wheel or combination of wheels.
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1.4.Different Types of Torque Vectoring Differentials(TVD)
Dynamic torque vectoring differentials:
Over the recent years Toyota has developed two new torque vectoring
differentials with the objective of improving the fuel efficiency and
provide better handling, manoeuvrability, stability and off road
performance.This is known as dynamic torque vectoring and is used in
gasoline based engines. Dynamic torque vectoring involves the
mechanism of torque vectoring differentials and modifying it to
improve the off road handling to steer in the direction intended without
the loss of the speed and stability. The innovation of this mechanism
lies in the incorporation of the disconnect mechanism, using the world’s
first ratchet-type dog clutches to stop drive system rotations so as to
transmit the force to rear shaft making it a two wheels drive to improve
fuel efficiency and significantly reduce the energy loss.
E-Four differential system:
This is a system used in the hybrid vehicles. The design of this system
is intended to increase the total torque provided to the rear wheels
(which are electric driven) by 30 percent by adopting a control system
to optimally distribute the torque to the rear wheels based on the
driving conditions.
2. Design aspect of torque vectoring differentials:

Mechanical torque vectoring differentials:
Most of the torque vectoring differential designs involve the

usage of two pairs of gear sets in different speed ratios, and
utilizes the brakes, clutches and motors to control the direction
of transferred wheel torque.
There are two types of TVD designs
1. Stationary clutch design(STC-TVD)
2. Superposition clutch design(SPC-TVD)
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The schematic diagrams of SPC-TVD and STC-TVD are

illustrated in Figure 1 and their system configurations
transferred by the means of function power graph are shown in
Figure 2. In Figures 1 and 2, DG denotes the differential gear
set; W1 and W2 are left and right wheels respectively,C1 and C2
are clutches,B1 and B2 are brakes; G,G0,G1and G2 are gear
pairs; PG1 and PG2 are planetary gears; IN is the input of the
engine power.
In Figure 2, the SPC-TVD consists of two gear pairs (G1 and G2),
and two clutches (C1 and C2).When C1 is engaged, the speed ratio
of the left and right wheels is decided by the gear ratio of
G1.Similarly, when C2 is engaged, the speed ratio of the two
wheels is decided by the gear ratio of G2.With the different gear
ratios of G1 and G2, tire slip ratio of the two tires can be
controlled with different. Engagements of the clutches, so that
different traction distributions can be achieved and the torque
vectoring effect can be realized.
A similar operation principle is also observed from the STC-TVD

design, in which two planetary gear sets PG1 and PG2 are
involved, and two brakes B1 and B2 are used to select the
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direction of the torque vectoring effect. When B1 is engaged, the

speed ratio of the left and right wheels is decided by the gear
ratio of PG1. On the other hand, when B2 is engaged, the speed
ratio of the two wheels is decided by the gear ratio of PG2.
According to the two current TVD designs discussed above, a

TVD can be developed when two gear ratios between the left
and right wheels are achievable, and the two ratios can be
selected by controlling the engagement of the clutches or brakes.
All wheel torque vectoring system design:
This design involves an electric motor at each wheel, the system

is able to control the torque produced by each motor 100 times
per second. This is done by feedback control system.
AWTV system works with several systems and sensors to make

the car to exactly what the driver wants. It communicates with
accelerometers, gyroscopes, steering angle sensors, and wheel
speed sensors to determine what is happening with the car, then
sends the appropriate power to each motor. This technology is
implemented in the RIMAC CONCEPT ONEand only 8 cars
with the above technology have been made.
3. Potential problems in the torque vectoring

differential
The technology of torque vectoring differential has its own share of

defects and possible cons.The mechanical differentials can definitely
change the wheel speed ratio to a greater extent but using more
number of gears to achieve better handling can cause to increase the
weight of the body, this results in decreased fuel efficiency.
The mechanical gears cannot completely transmit the 100% of the

engine power to the wheels. When using clutches to control the
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differentials there is always a factor of time to engage and disengage

the clutches, lower the time factor, lesser the drop in the speed.
In case of the electric drives the whole systems run on the basis of
feedback control systems using a variety of sensors, in this case there is
always a possibility of sensor failure, in order to ensure the safety a
manual override must be provided along with individual sensor failure
indicator so as to ensure the health of the differential system.
4. Combination oftorquevectoring along with the KERS

technology
A kinetic energy recovery system (often known simply as KERS,

or kers) is an automotive system for recovering a
moving vehicle's kinetic energy under braking. The recovered energy is
stored in a reservoir (for example a flywheel or high voltage batteries)
for later use under acceleration. Examples include complex high end
systems such as the Zytek,Flybrid, Torotrak and Xtrac used in racing
and simple, easily manufactured and integrated differential based
systems. This technology when combined with torque vectoring can
result in immense cornering speeds with high stability. This can change
the outcome of the racing industry by decreasing the need for drifting
and the fatalities of race drivers due to spinning at curves.
5. Enhancements in the TVD and Conclusions
The control and capability benefits of all-wheel drive when one is

dealing with the elements—come sand or high water. Dropping an
engine's torque down to the ground with four tire patches instead of
two would give any vehicle more traction. But headed to market in
more and more performance cars are new systems that can
seamlessly and instantaneously distribute torque to any single
wheel at a time. Welcome to torque vectoring all-wheel drive.
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Most modern all-wheel-drive cars and SUVs already offer some type
of computer-controlled, part-time engagement to save fuel. When
the computer detects that one or more wheels is rotating faster than
the vehicle's speed or that the vehicle is yawing off its intended path
of travel, the system steps in. First, it engages the other drive axle
and applies a proportion of the vehicle's torque to it. If the wheels
continue to spin, the computer reduces engine torque or even brakes
one of the wheels, if necessary.
In recent times, these systems have taken a fairly radical step

forward. Automakers have reinvented front and rear differentials to
the point where an engine's torque can be passed around—or
vectored—to each corner of the car. In other words, torque can go
from front to back like a traditional all-wheel-drive
setup and distribute from left to right on a given axle—all very, very
quickly. It's like having a computer-controlled, super-speed limited
slip differential in each axle. This means not only great foul-weather
traction but also eerily competent handling performance on dry
roads.
Acura, for instance, has offered its Super Handling All-Wheel-Drive

(SH-AWD) system for several years. It monitors vehicle speed, wheel
speed, gear position, steering angle, yaw rate, lateral G forces and
other inputs, while automatically adding torque to the outside rear
wheel in corners to make the car turn quicker. A set of
electromagnetic clutches in the rear differential passes the torque
from side to side. The system, which normally distributes torque 90
percent up front and 10 percent in the rear, quickly changes to a
50/50 split during acceleration or hard cornering. The system can
then send some or all of that 50 percent going to the rear axle
directly to the outside tire to make the vehicle bend into a corner
more sharply. Mitsubishi, a torque vectoring pioneer, has used a
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similar system called Active Yaw Control in the rear axle of its high-
performance Evolution sport sedan since the late '90s.
Audi, BMW and others are taking it a step further: While SH-AWD
only works on the rear axle of a normally front-drive vehicle, new
systems from automotive suppliers Ricardo in Britain and ZF in
Germany can vector torque to all four tires simultaneously.
The Ricardo Cross-Axle Torque-Vectoring system uses wet clutches

and planetary gear sets, in both the front and rear differentials,
that are controlled by electrical, electromechanical and
electrohydraulic control systems. Ricardo says the system's response
time, from the push of the accelerator to the delivery of up to 90
percent of available torque, is only about 0.1 seconds. If Ricardo's
vectoring is used only in an all-wheel-drive vehicle's centre
differential, the engine torque effectively gets passed around front-
to-rear and side-to-side—with split-second accuracy—for every
driving condition. Look for it in the new Audi A4 and A5.
German transmission and driveline company ZF has also developed

a torque-vectoring system, called Vector Drive—and it's ready for
volume production in all-wheel and rear-wheel drive vehicles. The
system distributes drive torque individually to each of the rear
wheels, generating a yaw movement around the vertical axis. This
improves both cornering performance and vehicle stability in less-
than-ideal road conditions. When driving straight, the torque
vectoring rear axle behaves like an ordinary open differential. Drive
torque is distributed equally to the wheels. Torque is only
distributed individually along both half shafts on an axle during
cornering, controlled by an electromechanically actuated multi-disk
brake. The ZF system also generates wheel differential torque
independently of the drive torque. When cornering through a
downhill section off the throttle, the outer wheel receives more
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drive torque than the inner wheel, allowing crisper turn-in. The
gears of the planetary gear set don't turn when driving straight, so
the system saves fuel too. The torque-vectoring drive also acts like a
positive-traction or locking differential on dry or uneven traction
start-ups, with torque going to the wheel with higher friction
potential.
These new torque vectoring systems will undoubtedly join forces

with the pre-existing ABS brakes, traction control, stability control,
steering and rollover mitigation systems. The result will be smarter,
safer and quicker vehicles, whether it's on a rain-soaked freeway, a
snowy driveway or a racetrack.
Bibliography
1. https://www.motorauthority.com/news/1109527-how-the-
rimac-concept-ones-torque-vectoring-system-does-it-all.
2. Shibahata, Y.; Shimada, K.; Tomari, T. Improvement of
vehicle maneuverability by direct yaw moment control. Veh.
Syst. Dyn. 1993, 22, pp. 465–481.
3. Gradu, M. Differential with Torque Vectoring Capabilities.
U.S. Patent No. 7,238,140, 3 July 2007.
4. Granzow C, Pete R, Gruhle W, et al. Driving precision by
torque vectoring – the new ZF axle drive. In: 8th European
all-wheel drive congress, Graz, Austria, 2007
5. Tomo Kato and Kaoru Sawase, Classification and analysis of
electricpowered lateral torque-vectoring differentials, Proc.
of IMechE, Part D: J. Automobile Engg., 2012, vol. 226(6),
pp. 713-724.
6. Yu Fan Chen, I-Ming Chen, Joshua Chang and Tyng Liu,
Design and Analysis of a New Torque Vectoring System with
a RavigneauxGearset for Vehicle Applications, Energies,
2017,10, 2157, pp. 1-16
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7. CAPABILITIES AND LIMITATIONS OF TORQUE

VECTORING SYSTEMS (WHICH CORRECT THE
DIRECTION OF MOVEMENT BY WHEEL DRIVING
FORCES) IN MOTOR VEHICLES by JAN DZIDA1
University of Bielsko-Biała.
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CHILDREN’ INVOLVEMENT IN TOURISM

Ni WayanMekarini
I Made SuwitraWirya
IGAB Widiantara
Triatma Jaya Instituteof Tourism, Bali
Abstract
The study entitled children’ involvement in tourism investigate
reasons of school-age children put themselves into tourism at their
young age. Researchersintent to explore the various threats that can
force them away from their ideals. Data collection is done by
observation and in-depth interview. Later, data is analyzed based on
the theory of social dynamics and ideology that are related to the norms
upheld. After analyzing, data are presented systematically to support
easy understanding. The study found out that the involvement of
school age children in tourism as seen on MandalikaLombok because of
low financial condition.Most children work as souvenirs sellers for
school fee and family need.They also have another talent, such as
giving information for best photo spots and also organizing motion and
position for best picture. These children acquire special skills from
adults to be able to become photographers and operate various
cameras. The existence of the adults behind them is a worrying thing
since they may take them as a money-making machine. Children may
also involve in sex exploitation behind the bank note they chased. If
there is no supervision by the object manager, parents and the
community, children are at risk of dropping out of school and becoming
workers at their young age. Even if the economic condition of the
family is no longer weak but the children tend to be hopeless to catch
their ideal. The local management should take responsibility of
involving young age employee which is against human right for
children protection.
Keywords: involvement, low financial condition, school age,
exploitation, hope
Introduction
The local government of West Nusa Tenggara is working hard to
develop a strategy for increasing employment and community incomes.
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With the central government, the Lombok government continues to

provide space for children and young people of school age to gain higher
knowledge through programs funded by the government. The education
and skills program is aimed at the younger generation to equip
themselves with sufficient knowledge and skills when entering the
work place.Local government incentive to invite local residents to build
their area rather than looking for work abroad as Indonesian labor
(TKI) or female labor (TKW). Because not a few TKI sent home in pain
due to persecution, doing crime, without proper wage, and receive other
untrusted treatment. The root of the failure problem was allegedly due
to lack of education and skills possessed.
Like the island of Bali, the island of Lombok is also considered a small
island that has a fascinating natural charm. The width of the island of
Lombok is around 5,435 km2 so that it can be accessed from end to end
in a short time. The island of Lombok consists of 4 regencies and 1 city
state, such as West Lombok Regency with the capital of Gerung,
Central Lombok Regency with the capital of Praya, East Lombok
Regency with the capital of Selong, North Lombok Regency with the
capital of Tanjung, while the Mataramcity state with the capital of
Mataram. In tourism sector, Lombok is proud to have got high tourist
visits to Gili Air, GiliTrawangan, GiliMeno, Senggigi Beach,
SegaraAnak and Kuta which are best magnets with charming beaches
and interesting activities. The attention of the World begin to focus on
the natural attraction of Lombok Tengah when the opening access
through the International Lombok Praya Airport in Central Lombok.
Interest becomes stronger when the President of the Republic of
Indonesia, Mr. Joko Widodo popularizes the Mandalika coast and
succeeds in becoming viral. Finally, the great sprinter raised to scent
the Indonesian nation who the son of central Lombok. Therefore, the
appeal of Lombok is complete for all Indonesian and foreign
countries.The stigma that Lombok as a barren area and the supplier of
Indonesian migrant workers has been abandoned.
Children involvement in the workplace is still not accepted. Children
should have the opportunity to adequately train the rough motor
conditions with various gestures and games after the learning process.
If the time to play is consumed for work, then it is believed will bring
adverse impact on its development. Various forms of bad things become
possible because children are still not ready yet to familiarize of how to
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see the World. Unfortunately the world of tourism gives access to

children to collect money. For example, some children exploitation
occurred the world of tourism began to be badly heard. In Bandung
West java, the exploitation involved children which were carried out
using hotelfacilities. It injured three boys in early 2018. Of course this
tragedy would not be the last which is bring a bad impact and must be
evaluated in order to restorethe Indonesian image as safe and
comfortable tourism destination. In that case, the greatest hope is
directed to the participation of the community in the supervision.
Based on the background above, the formulation of problem are
described as follows.
(a) How children involve in tourism area on the coast of Mandalika,
Lombok?
(b) how far are children involved in tourism area on the coast of
Mandalika, Lombok?
(c) What is the impact ofchildren involvement in tourism on their
education?
In line with the formulation of the problem, the study aimed to find out
(a) the reasons children involved in working in the world of tourism on
the coast of Mandalika Lombok, (b) the level of involvement and
working in the world of tourism on the coast of Mandalika, Lombok,
and (c) the impact on the education they livedwhile working in the
world of tourism.
Theoretical Review
The development of tourism should be in line with the wishes of the
local people. Tourism that is not supported by the community in that
location will cause a complicated problem for the operation of the hotel
or restaurant that leads to big losses of investors. Therefore, the
sociological approach becomes an alternative that should be the main
consideration. The sociological approach sees social phenomena as
processual, comparative, and emotional. Such a viewpoint is intended
to make the analysis more comprehensive and meaningful (Cohen,
1979). Processual studies are studies that pay attention to the aspects
of time and process series, while comparative studies consider
comparisons of one situation with different situations. Equally
important is the perspective of emic that is the view of several sectors
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involved in the development of tourism including the aspects of tourist

relations with local communities. How local people perceive changes
and make sense of visitor arrivals to their areas need to be explored.
Generally, if the public is open to changes and diversity then tourism is
definitely growing rapidly. On the contrary, a homogeneous view
requires a more thorough understanding while instilling a sense of the
beauty of diversity. The characteristic of the Sociological approach sees
that the tour indicates the existence of human movement in the
dimension of space and time. The movement is generally performed as
an activity outside of work time as an activity outside the daily routine.
Trips promise tranquility, the beauty of the tourist location or
attractions offered. Travel activities are activities for a while
(temporary) to enjoy the place or attraction without the desire to get
life in the place. Mass movement can be a vehicle for new socialization
of human encounters in a particular place based on fantasy, fantasy or
image (Urry, 1990).
Turner and Ash (1976) states that there is social impact of tourism to
the culture. Turner and Ash assert that Tourism is everywhere, the
enemy of authenticity and cultural identity. "Wherever tourism grows it
will erode the authenticity and local cultural identity. Thus, the
identity opportunities of people in tourist destinations will shift or even
experience degradation is very open. Of course, it is not easy for all the
members of the local community, especially for people in tourism area
who intend to improve the standard of living. It means that
degradation and cultural shifting is there on the tourism object that
make the identity fade.
Based on ideology concept (Halliday, 1985: 5) community represent it
as part of cultural context representation, which is associated with
sense, norms, knowledge, and values. Lexicon selection to realize a
meaning is different among groups because sense is beyond the
language aspect. For example, the meanings of the statue, picture, or
dance are different. Eggin (1994: 113) states that ideology is the most
abstract contextual element that is implicitly realized in the
text. Ideology includes language relationship with mind, participants,
and culture which clearly describe field, actors, channel, and the
meaning source. On the other hand, text is also a discourse which
shows power domination (Kress (1985: 29). In discourse, ideology
covers the entire system of ideas and perspectives on the world to be
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able to form unconsciousness (false consciousness) to comply. It

happens because the ideology comes from experiences that are
condensed on the groups from previous generation to the next
generation. It then was appointed as a rule in social life that must be
obliged to all group members. Ideology is essentially a form of
knowledge and its relation to social class structure and the
implementation of specific social practices. Knowledge can be a social
convention which was subsequently accepted as cultural norms and
values. For example, repetition of certain tradition makes the
implementation of certain social practices of conventional practices that
must be implemented. Thompson (1984: 60) reveals that ideology is a
way of creating a stable social order, legitimacy explicit, and evokes the
spirit of the past. Thus, ideology is always "immanent" in effective social
relations which later turned into imbalanced relation. Based on those
definitions, this study of ideologies beyond the children involvement in
tourism explores the range of knowledge and perception of the world
that make up the group identity and legitimacy aspects which also
create domination to force social arrangement.
Research Methodology
Children in Tourism Research is a field research that examines the
sociological behavior of the community in the study sites. Research is
carried out in a natural setting and is ethnosynchronous, in the sense
that the description is tentative and applies to a particular society.
Synchronic characteristics refer to research that aims to describe a
phenomenon at a certain time and how the phenomenon is expressed
(Bungin, 2008: 181). This research focuses on the behavior and
childrenpoint of view in the dimension of space and time that occurred
in MandalikaKuta area,Central Lombok. Data were collected by
observation technique of skimming and interview with informant.
Information from the informant made into the main data then studied
to identify problems encountered. As a qualitative research, the
researcher's skills to obtain the required data greatly determine the
depth of the research. Explanatory notes are excavated classified to set
the direction toward the conclusion of the study.
Discussionand Result
It is believed that every guest who travels makes use online
information and recommendations through internet access. The
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beautiful location shared by the previous visitors might be the first

thing to attract others on the social media. Since one feel attracted so
further exploration they did to make herself convinced. In the other
words, comments and solicitation recommended by previous travelers
become a magnet before determining the destination to be visited. But
if Mr. President recommended it, every Indonesian citizen feels obliged
to follow the recommendation. So, detailed information shared through
social media networks has the potential to support quantity of visitors
level to those locations.
The involvement of children in tourism occurs in newly developed areas
of tourism sector such as central Lombok. It was evident in the
observations of researchers on the Kuta beach, better known as
Mandalika, that there were more than eight children involved
inMandalika beach. The children are aged around eight to fifteen.
When viewed from its age, it is immediately known that these children
are students at elementary or secondary school. They are not only
consist of boys but also some girls.Children involved in the Mandalika
coastal tourism area are not children who live or originate near the site,
because the location and development of Kuta beach as a tourist
attraction does not blend with the local people's village. Mandalika
beach location is a new location away from the residential location of
the population so that children must travel about ten kilometers from
the house to this beach. This means that of course there is a strong
need for him to take that long journey. In interviews with these
children, it emerged that they had to help family finances by working.
The desire to improve family income and be able to buy school needs
independently encourages them to work at a young age.Regardless of
the motivation to work at a young age, there is an intriguing thing
related to selling techniques. At first the children offered visitors
bracelets, necklaces, hair ornaments and small souvenirs. Although
offered at low prices, most visitors are not interested in buying
souvenirs because of their low quality and are considered not durable.
However, the children did not give up. If visitors begin to glance at
their merchandise, the child will approach and follow the visitor until
they actually buy it. If visitor are not agree to buy souvenirs provided,
children will issue the next step that is to buy souvenirs as a donation
for the sustainability of their education. That is only one reason that
makes visitors give up money voluntarily as well as giving pocket
money to their children. On this stage, quite a few visitors donate
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without taking the items offered or allowing the change to be the child's
pocket money.. Thus it is reflected that merchandise is not the main
aspect of livelihood but pinches the value of humanity.
Here's an example of the expressions.
1. Bu inikalungbagus, belilah.
‘Mom, this is nice necklace, buy it, please’
2. Bolehpilih yang mana. Sayakasi 3 lima ribu
‘You may choose any. I give five thousandfor 3 pieces’
3. Initidakmahal.
‘It's not expensive’
4. Belilahitung-itungibu bantu sekolah kami bu
‘Buy it, mom as if you help our school fee, mom’
5. Ibutentujarang-jarangkesini, jadibantulahbuatsekolah kami
‘Mom, of course you rarely come here, so help my study’
The stage of the struggle for children to raise money on
Kutabeach does not stop at the sale of merchandise. Children who are
successful take a bit closer to visitors begin to show intimacy by giving
information about the beautiful spots in the coastal area. If trust starts
to appear, children start selling other information and skills, like where
are thebest photo spot and why it s be the best. The information given
as if a professional guide since they know every detail of the beach. To
the visitors theybegan to offer his skills to take pictures. This is again
astonishing how they confident to operate camera on visitor phone cell.
The following is series of children description of the Mandalika beach.
1. Kalo selfie hasilnyatakbagus
‘If you take picture by yourself it would not be the best’
2. Takdapatgambar yang enak
It can notcapture the best site’
3. Mari sayaambilkangambar
‘Let me take your picture’
4. Spot foto yang bagusdisiniadabanyak
‘There are lots of good photo spots here’
5. Kalodisini juga bagustapiharusberdiriagakkesana
“It's good here too, but you have to stand a bit further’
6. Ya, ibuterusmundurdulutrusnolehkesini
Yes, mom,..keeps going back and then look at here’
7. Tangannyamenunjuk
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‘Put your hand points’

8. Bukanbegitutapibegini
‘It's not like that, but like this’
9. Telunjukkebawah, janganbengkok
‘Finger down, do not bend’
10. Ya, cobaperiksahasilnya, bagus
‘Yes, try checking the results, good’
These children are clever enough to give explanation that selfie is
not able to reflect the true beauty of the beach. The children stated
carefully that they were trained and able to capture visitors well with
any camera series. Visitors are directed to certain position of faces,
hands, feet and body to produce satisfactory images. Visitors can get
pictures as if flying in the clouds, hovering on the surface of the water,
piercing / pushing / lifting the hill as well as to be twin in pictures. The
skill is not only owned by one or two children, but they are all capable
of shooting well. That means the children have received training on
how to take pictures and are introduced to various types of mobile
phones. Researchers did not see the children equip themselves with
phones cell, but were always able to operate various brands of mobile
phonesbelongs to the visitor. At the end of the visit, children were able
to give their farewells and await the next visit and also express their
hope that visitors would bring along some other friends back. Of
course, the familiar impression that he stated push visitors to send
some more tipping as a thanksgiving along the visit.
Selling technique owned by these children as if it is previously arranged
wlland accepted as a form of internalization. The stages are detected
flowing well and very rarely fail to take the hearts of visitors. If the line
drawn, it looks children's behavior at Kuta beach location is a
combination of requests and abilities. Children are pressed for money
to continue their education and help family finances, while on the
visitors side there is the impression that they have done good by giving
donations to the children's education and are helped by having the best
pictures from those little hands.
In the field it is reflected the role of adults who encourage children to
work with a predetermined groove. There is the role of adults who
think about the ways to be followed in work. It seems that money-
making opportunities are viewed more openly at the age of children
than adults. In fact, there are concerns that children are used by adults
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by providing them with certain skills that can touch visitors' sympathy.
In the interview it was found out that the children made sure to keep
studying in school diligently and only spent rest time at Mandalika
beach. Vague exploitation of childrenoccurred since it’s not the right
time to make money. However, they admit that the work they
undertake is only done as a side job after the learning task is
completed. The possibility of dropping out of school is very vulnerable
because of the strong demands of parents to improve family finances
and children begin to enjoy spending time without touching books. If
there is an indefinite omission then the children tend to become
workers at a young age. Unformed maturity has an impact on the
vulnerability of being the object of sex exploitation that is slowly
approaching along with the embedded bank note received. Therefore
anticipatory action must be taken. Supervising is urgently needed by
managers to prevent children from falling into young labor and
abandoning their study responsibilities. Children must be listed and
ascertained the continuity of their education. Regular monitoring in the
area around the site may prevent children from the possibility of sexual
exploitation and kill children future. If crowded happened on week end,
on weekdays beach conditions are relatively quiet with a small number
visitors. This situation can be used by predators to act. Reminding
government statement thatpreventing children from exploitation is
everybody duty. People are obliged to prepare preventive actions
rather than shouting loudly after. Therefore, the involvement of
underage children in the world of tourism area needs to be watched
carefully and even minimized.
Conclusion and Suggestion
The involvement of children in tourism object as seen on the Mandalika
coast of Kuta is very worrying. No fewer than eight children stand by
visitors offering souvenirs such as necklaces, bracelets or hair
ornaments. They urge visitors to buy their wares for the school fee.
However, these young children are not ordinary sellers. They even able
to explain the best photo spots including organizing motion and
position to produce the best picture.Theseem trained with special skills
by adults to be able to become child photographers and operate various
cameras belonging to visitors. The existence of adults behind the work
is worrying. Exploitation is vulnerable in children because it is used by
adults as a money-making machine. They would be victim of further
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exploitation especially sex exploitation which is hide behind the money

they chased. If there is no supervision, then the children are in risk of
dropping out and becoming young workers.It can be recommended that
the managers should perform data collection and supervision to make
sure those school-age children continuing their study. It must be also
ensured that children do activities on the beach after school. This
means that supervision is needed to stop their access to the beach on
school hours to support children protection from under age worker.
Referensi
Cohen, E. 1988.Authencity and Commoditization in Tourism. Annals of
Tourism Research 15 (3) : 371-386.
Fairclough, N. 1995. Critical Discourse Analysis: The Critical Study of
Language. New York: Longman Publishing.
Halliday, M.A.K. 1985. Language as Social Semiotic. London: Edward
Arnold.
Halliday, M.A.K. 1973. Exploration in the Functions of Language.
London: Edward Arnold.
Kress, G. 1985. Ideological Structure in Discourse.DalamDijk, T,.ed.
Dimension of Discourse. Volume 2. Amsterdam: Academic Press.
Lanfant, et al. 1995. (eds). International Tourism: Identity and Change.
London, New Delhi: International Sociology.
Pitana, G. danGayatri, PG. 2005.SosiologiPariwisata. Yogyakarta:
ANDI.
Tony Barners.1998. Kaizen Strategies for Successful
Leadership.(Penj.Widjokongko).Batam: Interaksara.
Turner, L. and John Ash. 1976. The Golden Hordes: Internasional
Tourism and Pleasures Periphery. New York: St. Martin’s Press.
Urry. J. 1990. The Tourist Gaze: Leisure and Travel an Contemporary
Societies. London: Newbury Park.
Wiratejadan Kartika Yuni.2016. Tantangan Bali
dalamMempertahankanPariwisataBudaya di Era
Globalisasi.JurnalPerhotelandanPariwisata Vol. 6 Nomor 2
Tahun 2016.Badung: STIPAR Triatma Jaya.
www.ijmer.in 96
THE INFLUENCE FACTORS OF TRUNYAN VILLAGE VISITORS

Luh Komang Candra Dewi
candradewi_75@yahoo.com
Sekolah Tinggi Ilmu Ekonomi (STIE) Triatma Mulya Dalung
I Putu Bagus Suthanaya
suthanayab@gmail.com
Dewiwati Sujadi
dewi.sujadi@triatma-mapindo.ac.id
Luh Kadek Budi Martini
myseruni@yahoo.com
Fakultas Ekonomi Universitas Mahasaraswati (FE Unmas) Denpasar
Abstract
This research aimed to find out factors that influenced
tourist visit to Trunyan village that could give a brand image
toward the present of Trunyan Tourism Village. This research
was analyzed using statistic and was processed using computer
program package, a sub-program of SPSS (Statistical Package for
Social Science) 15.0 for Windows. The factors that influenced the
tourist visit to Trunyan village were the eminent factor, the
additional value factor, and the supportive factor. It could be
concluded that based on the three factors above, the eminent
factor was the most dominant factor that determined the tourists
perception in visiting Trunyan village. It was formed by the
buildings and the facilities have a high historical value, the
location, the promotion by travel agencies, the security of the area
and the surrounding of the tourism object, the tourism object has
many venues to be visited, and the life experience.
Keywords: eminent factor, additional value factor, supportive
factor.
Introduction
Nowadays, tourism sector contributes approximately 4% of
Indonesian total economy. In 2019, Indonesian Government will
double it into 8% of GDP which implies that in the next 4 years,
the total visitors needs to be doubled into approximately 20
million visitors. To achieve this goal, the government will focus on
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improving the infrastructures (including information and

communication technology infrastructures), accesses, health and
hygiene, and increasing online promotion (marketing) campaigns
abroad. The government also revises a free visa access policy in
2015 to attract more foreign tourists (https://www.indonesia-
investments.com/id/bisnis/industri-sektor/pariwisata).
From dozens of Indonesia tourism destinations, Bali is the
main tourism destination for the foreign tourists. It is because the
uniqueness of Bali in form of culture and nature panorama. Its
uniqueness spreads to almost all over Bali including Trunyan
Village in Bangli Regency. Trunyan Village is an ancient village
located on the shore of Lake Batur. It is a Bali Aga village or also
known as Bali Mula village with its unique and interesting society
life. Trunyan society keeps its tradition and heritage that can be
enjoyed by the visitors. The most interesting place for the visitors
is the Trunyan cemetery.
Trunyan tourism object experiences a quite sharp
fluctuation on the tourist visit because many problems caused by
the brand image which is not too good. By understanding the
importance of a brand image influence in a tourism industry and
toward the development of a society economy, therefore each
tourism attraction has to have a good brand image. Its aim is to
develop a strong attraction from a destination because when a
tourist assesses and evaluates a destination, the perception
toward the destination is the main component in determining a
visit. The consequence is that the destination image will play an
important role in attracting and keeping the tourists
(Andreassen & Lindestad, 1998).
An example of a brand image importance is increasing the
interest of tourist visit. A good brand image accompanied by the
potential of Trunyan Village Cemetery will increase the tourist
visit interest, thus the development of Trunyan tourism village
can be increased. Brand image is very important to be developed
by a business for its continuity in attracting tourists to use their
products and services and to compete with the other competitors.
Brand image is the representation of the whole perception toward
a brand that is formed by information and experiences toward the
brand. Brand image can be formed if the tourists have a positive
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vision or perception toward a brand that enables the tourist to do

a purchase or even repurchase for many times.
Other than brand image, another factor which becomes
tourists’ assessment that is also important in the success of a
company is the perceived quality. Perceived quality or also called
as quality impression is a part of service quality but focuses more
on the impression of the tourists toward the whole quality or the
eminence of a product or service related to the expected goal.
Therefore, it can be inferred that brand image and perceived
quality become the consideration factors for consumer in taking a
decision in purchasing a product or service. It is similar to
Trunyan Village which is famous for its culture and uniqueness
which become the strength in attracting tourist interest to visit
the object.
Based on the description above, therefore, it is interesting to
examine factors which influence tourist visit to Trunyan village
which give brand image toward the present of Trunyan Tourism
Village.
A. Literature Review
b.1 Definition of Tourism Marketing
Tourism marketing is a management process which is
conducted by a travel agency to determine actual and potential
tourists, conduct a communication in order to be able to
determine and influence the interest, need, motivation, like and
dislike of a tourism package which is offered by the travel
agency and then formulate and adjust it to achieve the optimal
satisfaction of the tourists (Yoeti, 1990:30; Kotler, 2001;
Wahab, 1997; Yoeti, 2002:1).
b.2 Brand Image
Brand image according to Kotler (2000:404) is a set of
scores of a brand, while according to Aaker (1997:69), brand
image is how a consumer and others understand and accept a
brand. Keller (2003:166,167) explains that a positive brand
image can be developed through a strong marketing program
toward a product which is unique and having a highlighted
advantage which can differentiate it from other products.
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b.3 Perceived Quality Theory

Aaker (1991) states that perceived quality refers to the
quality impression of a brand. Zeithaml and Bitner (in Umar
2003:237) define five dimensions in determining a service
quality; they are Reliability, Responsiveness, Assurance,
Empathy, and Tangibles. Durianto (2004) states that quality
impression has an important role in a brand, therefore the
effort to develop a strong quality impression needs to get a
serious attention so that the company can seize and conquer
the market in every of product category.
b.4 Purchase Decision Making
Simamora (2002;15) states that there are five roles happen
in a purchase decision, they are Initiator, Influencer, Decision
Maker, Purchaser, and User. Kotler (2004:204) states that
there are five steps taken by consumer in the purchasing
process, they are problem identification, searching information,
increasing attention, and searching information. The consumer
information is categorized into four groups, they are private
source, commercial source, public source, and experience
source. Related to purchase decision, Kotler (2002) states that
the purchase decision is a consumer act to buy or not to buy a
product.
B. Theoretical Framework and Research Concept
c.1 Theoretical Framework
The influence of brand image will become an important factor in
influencing tourist decision in visiting a tourism destination.
Basically, the good or bad quality of a brand image depends on the
good or bad the service quality of various parties of the destination.
In making a decision in visiting a tourism destination, a consumer
will consider two factors, internal factor and external factor.
Internal factor is a factor which comes from the tourist him/herself
which covers education, job, health, life style, motivation,
perception, and financial. External factor is a factor which is
influenced by the condition outside of the tourist him/herself which
covers social, culture, demography, natural environment, politic,
government, and technology. The factor analysis technique used
was the confirmatory analysis technique toward 21 variables and
the two factors, internal and external. There were 21 variables from
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those two factors which covered the needs of the tourist to visit the
destination, needs to get destination information, tourist
experience, accuracy of choosing destination, the uniqueness of the
destination, tourist satisfaction, tourist behaviour after the visit,
the total expenses, destination reputation, the provided facilities,
location and access, promotion done by the related parties, different
attraction, the hospitality of the society, the way the society
communicate, the accuracy of the society in giving information, the
readiness of the society, the tourist safety assurance, and the public
concern
Based on the analysis result toward the variables and the
factors, it was determined which variables that gave quite big
influence toward the factors and the role of each factor. Thus, from
the average role of each factor, the strength of Trunyan Village
brand image could be identified. This research also examined
whether the brand become the determining factor for the tourists to
visit Trunyan Village. By identifying each variable roles, then a
recommendation could be given on which variables that should be
improved or revised. It is expected that Trunyan Village is able to
maintain its service quality and uniqueness so that it can create a
positive image and brand image in the tourist perception to do a
visit. The theoretical framework is as follows.
Figure: Theoretical Framework
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c.2 Research Concepts

Homer and Swarbook (in Sudibya, 2004:96) state that there
are two determining factors in taking holiday decision; they are
internal factor and external factor. Internal factor is a factor
that drives the tourist visit which comes from him/herself or a
personal motivation which consists of personality, income,
health, family decision, past experience, hobby and passion,
knowledge of potential holiday, life style, habit, opinion, and
perception. External factor is a factor that drives the tourist
visit which comes from outside of the person him/herself, or a
recommendation of a travel agency, information obtained from
the destination, through tourism organization, recommendation
from colleagues and family, politic policy, health condition factor
of the destination, special promotion, and climate. Factors in
this research were internal and external factors which
influenced the tourist decision in choosing a tourism
destination.
C. Research Method
d.1 Research Approach
The approach used was the qualitative method supported
by qualitative data and was designed using survey research
design which involved foreign tourists and domestic tourists
who visited Trunyan Village.
d.2 Research Location and Length
The research location was in Trunyan Village,
Kintamani District, Bangli Regency. By considering the size of
the total respondents of the research, therefore, it was
determined that the length of the research was 3 months
which was divided into time for collecting data and time for
processing the data.
d.3 Types of Data and Sources of Data
The types of data of the research covered (1) quantitative
data and (2) qualitative data. The sources of data covered (1)
primary data and (2) secondary data.
d.4 Population and Sample
The population of tourist visit to Trunyan Village in 2016
was 12,989 visitors, and in a month, it can be calculated into
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12,989 : 12 = 1,082 visitors. The sample was taken using

accidental sampling technique.
d.5. Variable Types and Indicators
Variable is something which can differentiate or change a
value (Kuncoro, 2003:41). To answer the problem formulations
on the analysis of factors which influence tourist decision to visit
Trunyan Village, the variables used in this research was factors
analysis which influence the tourist decision.
The research instruments used to collect the data were the
structured questionnaire and unstructured questionnaire. The
structured questionnaire was used to find out tourist opinion
toward the brand image and the perceived quality in Trunyan
Village. The list of questions gave the respondent a chance to
choose some alternative answers. The unstructured questionnaire
was used to obtain in-depth data from the tourists. The list of
questions gave the respondent a chance to answer the questions
using his/her own words, thus the obtained answers were vary. The
research instruments were tested using Validity Test and
Reliability Test.
d.7 Data Analysis
The data were analyzed using descriptive statistics and
factor analysis techniques. Descriptive statistics are statistics
which have functions to describe or give a brief picture about the
examined object through a real sample data without conducting
analysis and making a general conclusion.
Factor analysis is a statistical technique which can be used
to give a relative simple description through variable numbers
reduction which is called factor. Factor analysis is a procedure to
identify an item or a variable based on its similarity. The research
results were analyzed using qualitative descriptive analysis
method using SPSS 23. Factor analysis is one of multivariate
analysis techniques which is part of variable relationship model
which is independent. Multivariate method consists of a relation
model of independent model and dependent model. According to
Hair et al (in Widarjono 2010: 240), they steps are 1) Calculating
the correlation between indicators which are observed, 2)
conducting factor extraction, and 3) conducting factor rotation.
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Matrix correlation analysis between indicators was used to

find out whether the indicators of tourism destination area (DTW)
satisfaction was valid to be analyzed using factor analysis. The
first suffice requirement is from KMO MSA (Kaiser Mayer Olkin
Measure of sampling adequacy and Barlett’s test). If KMO MSA is
greater than 0.5 then it is sufficient for factor analysis. It is a
statistical test for the total significance of all correlations in the
correlation matrix, its value is (sig=0.000). The measurement of
KMO can be seen on the table as follows.
Table: KMO Measurement
KMO Values Recommendation

.>0.90 Very good
0.80-0.89 Useful
0.70-0.79 Can be used
0.60-0.69 Sufficient
0.50-0.59 Bad
<0.50 Unaccepted
Source: Widarjono, 2010: 242
It is advised to use a high KMO as required which is 0.7, however,
value above 0.5 can still be used in determining factor analysis
(Widarjono, 2010:242). KMO indicates the correlation coefficient in
factor analysis and Bauerlett’s test of sparicity is a statistical test to
find out the total significance of all correlations on the correlation
matrix. The correlation coefficient is (sig 0.000).
After all of the requirements of factor analysis are fulfilled, then
the next step is looking at the indicators which are valid for factor
analysis. If the MSA score is higher than or equal to 0.5, then the
indicator is valid to be used. In contrary, if the MSA score is less than
0.5, then the indicator is invalid. The steps taken if an indicator is less
than 0.5 is by conducting Anti Image Correlation by giving an “a”
symbol which forms a diagonal line. The indicator which is less than 0.5
must be taken out and a re-analysis is conducted by omitting the
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invalid indicators, thus it will form a new KMO MSA and Anti Image
Matrices.
The second step in factor analysis is the factor extraction, a
method used to reduce some indicators of the data to produce lesser
factors which are able to explain the correlation between the observed
indicators. There are many methods that can be used, however, the
most common and simplest method is the Principal Components
Analysis (PCA). This method forms a linear combination from the
observed indicators. The first main component is the combination
which explains the biggest total variance from the sample and so on.
The factor extraction will produce the score of communalities and total
variance explained. The score of community shows the indicator
variance percentage which can be explained by the formed factor, for
example 70 percent or 80 percent. The initial eigenvalues can be
identified from the total variance. The score of eigenvalues > 1 shows
that the factor can well explain the indicator and needs to be included
in the forming of indicator (Widarjono, 2010:250).
The next procedure of factor analysis is conducting factor rotation
to produce a clear main component. The purpose of the rotation is to
obtain a factor structure which is simpler so that it can be easily
interpreted. The methods used are the varimax method, quantimax
method, and equamax method. The commonly used method is the
Varimax Method which is an orthogonal rotation to minimalize the
number of indicators which has a high loading factor in each factor
(Widarjono, 2010:244).
D. RESULT AND DISCUSSION
e.1 Descriptive Statistics
Based on the research results toward 130 respondents in
Trunyan Village Tourism Object, it can be identified some
characteristics of the respondents which cover the
characteristics of the respondents based on gender, age, and
source of information.
1. Respondents characteristics based on gender.
The respondents characteristics based on gender is
shown in the table below.
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RESPONDENTS CHARACTERISTICS
BASED ON GENDER
No. Total
Gender
Total Percentage (%)
1 Male 76 58.5
2 Female 54 41.5
Total 130 100
Source: Processed data
Based on the above information, the respondent of

the research was dominated by male respondent as many as
76 persons or 58.5 %, while female was only as many as 54
persons or 41.5%.
2. Respondents characteristics based on age.
The respondents characteristics based on age can be seen in
the following table.
TABLE
RESPONDENTS CHARACTERISTICS
BASED ON AGE
Age (Years Total

No.
old) Total Percentage (%)
1 < 25 75 57.3
2 35 – 45 30 23.1
3 > 45 25 19.2
130 100
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Based on the table above, it can be explained that the

dominant age was 25 - 35 years old as many as 75 persons or
57.3%, followed by 35 - 45 years old as many as 30 persons
or 23.1%, and > 45 years old as many as 25 persons or
19.2%.
3. Respondents characteristics based on source of information.
The respondents characteristics based on source of
information related to Trunyan Village Tourism Object can
be seen in the table as follows.
TABLE 2:
RESPONDENTS CHARACTERISTICS BASED ON INFORMATION
Total
No.
Information
Total Percentage (%)
Family or 65 49.2
1
colleague
2 Brochure 49 37.7
Other 16 13.1
3
promotions
130 100

Based on the table above, it can be explained that
respondents obtained the information about Trunyan
Village Tourism Object from brochure as many as 64
persons or 49.2%, then those who obtained the information
from family or colleague as many as 49 persons or 37.7%,
and those who obtained the information from other
promotions as many as 17 persons or 13.1%.
e.2 Data Quality Test
Before conducting factor analysis, the data quality test
was conducted first by using validity test and reliability test
toward the statement items to obtain a valid and reliable
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research result. The validity test was conducted to find out

whether the questionnaire which had been made was the
correct tool to measure the data and could reveal data from the
examined variables precisely. The questionnaire of the research
was designed to measure the tourist perception in taking
decision to visit Trunyan Village Tourism Object.
The validity was determined by looking at the
questionnaire result between each score item. According to
Masrun (quoted by Sugiono, 2001:124), an instrument is called
valid if it has the Pearson Product Moment correlation
coefficient (r) > 0.3 with alpha score of 0.05. Thus, if the
correlation of the item score and the total score is less than 0.3
then the questionnaire is invalid. The validity test was
conducted using sub-program package SPSS version 15.0 for
Windows.
To conduct a statistical analysis, validity and reliability
tests need to be conducted first on the research instruments so
that the researcher will be able to continue the analysis to solve
the problem formulations. According to Masrun, a research
instrument is called valid if it has Pearson Product Moment
correlation coefficient ( r ) > 0.3 with alpha score of 0.05 (quoted
by Sugiyono, 2001:124) and reliable if it has reliability
coefficient of 0.60 or higher (Arikunto, 1998 : 129). The result
analysis of validity and reliability tests of the instruments of the
research can be seen in the table as follows.
TABLE 3:
VALIDITY AND RELIABILITY TESTS RESULTS
OF THE RESEARCH INSTRUMENTS
Informa Correlati
Vari Question Reliability tion on
Information
able Item Coefficient Coefficie
nt
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X1 0.793 Valid
X2 0.377 Valid
Tou X3 0.814 Valid
rist X4 0.832 Valid
perc
X5 0.519 Valid
epti
on X6 0.565 Valid
in X7 0.899 Reliable 0.858 Valid
visit X8 0.051 Invalid
ing X9 0.869 Valid
Tru
X10 0.460 Valid
nya
n X11 0.414 Valid
Villa X12 0.382 Valid
ge X13 0.842 Valid
Tou
rism
Obje
ct

Based on table 3 above, only the X8 research instrument
which was invalid, therefore it was invalid to be analyzed
further, while the rest of the instruments were valid and reliable
because the correlation coefficient were above 0.3 and reliable
because the reliability coefficient score were above 0.6, therefore
the analysis could be continued.
e.3 Factor Analysis Result
In solving the research problems, the statistical analysis
was processed using sub-program package SPSS (Statistical
Package for Social Science) 15.0 for Windows. The obtained
research results are as follows.
a. Setting the Correlation Matrix
The valid data were processed using factor analysis
which produced correlation matrix. By the present of
correlation matrix, the relation between the examined
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variables could be identified. The variables which had low

correlation toward other variables were reduced from the
analysis. To test the variables, the score of KMO (Keiser
Meyer Olkin), Bartlett of Sphericity test and MSA (Measure
of Sampling and Adequacy) test were used. The tests results
of the variables is served in the table below.
TABLE
RESEARCH VARIABLES RELIABILITY
Variables KMO Bartlett of MSA Valid or

Sphericity Invalid
X1 0.805 Valid
X2 0.649 Valid
X3 0.818 Valid
X4 0.834 Valid
X5 0.804 Valid
X6 0.815 1060.728 0.914 Valid
X7 Sig. 0.000 0.872 Valid
X9 0.856 Valid
X10 0.866 Valid
X11 0.786 Valid
X12 0.658 Valid
X13 0.840 Valid
Based on the table above, it can be explained that
the KMO was 0.815 and Bartlett of Sphericity was 1060.728
with significance score of 0.000. The scores of KMO and
MSA of all variables were already above 0.5 and the
significance score were 0.000 (less than 0.05), therefore, the
variables could be processed further.
b. Determining the Total Factor
Total factor is the combination of some variables
which correlates each other which is based on eigenvalue
score. The eigenvalue score is the sum of variance of
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correlation scores of each factor toward each variable which

forms the related factor. The bigger the eigenvalue score,
the more representative the factor as the representation of
the variable group. The chosen factor for the further
analysis in a model was based on the limitation of the factor
which had eigenvalue score >1. Thus, there were three
factors which explained 84.090 % of the total variance factor
which determined the tourist perception in visiting Trunyan
Village Tourism Object.
TABLE 5:
TOTAL FACTOR
Factor Eigenvalue Percentage of Percentage of
Variance Cumulative
1 6.476 53.964 53.964
2 2.564 21.364 75.328
3 1.052 8.763 84.090
Based on table 5 above, it can be concluded that factor 1
had eigenvalue score of 6.476 with variance contribution of
53.964 %, factor 2 was 2.564 with variance contribution of
21.364 %, factor 3 had eigenvalue score of 1.052 with variance
contribution of 8.763, therefore, cumulatively the total variance
which was formed by the three factors was 84.09 %.
c. Factor Rotation
The factor matrix was transformed into simpler
matrix so that it was easier to be interpreted through factor
rotation. The factor rotation was analyzed using varimax
rotation technique.
TABLE 6:
FACTOR ROTATION RESULT
No Variables Eigenvalue Loading Percentage

factor of Variance
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1 X1 6.476 0.925 53.964

X3 0.866
X4 0.935
X7 0.923
X9 0.950
X13 0.944
2 X2 2.564 0.974 21.364
X5 0.918
X12 0.976
3 X6 1.052 0.596 8.763
X10 0.587
X11 0.874
On the factor rotation above, it shows that there were
12 variables which had loading factor > 0.45 which were
grouped into three factors which achieved cumulative
variation of 84.090 %. It means that the percentage which
determined the tourist perception to visit Trunyan Village
Tourism Object was 84.090 % could be explained by the
three factors mentioned above.
d. Factor Interpretation
The factor interpretation was done by categorizing
variables which had loading factor minimum of 0.45. Maholtra
Naresh (1996:75) suggests that the higher the loading factor,
the stronger the correlation between variables with the factor.
Determining the minimum of loading factor is relative and there
is no general agreement on the requirements.
Based on the SPSS Ver. 15.0 output, it was obtained
three factors which determined tourist perception in visiting
Trunyan Village Tourism Object, they were:
The first factor had eigenvalue of 6.476 with a
determining variance percentage score of 53.964 %. This factor
was formed by the provided building and facilities have a high
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historical value (X1) with loading factor of 0.925. Location which

is easy to be reached (X3) with loading factor of 0.866.
Promotion by travel agency (X4) with loading factor of 0.935.
The security of the area and the surrounding of the tourism
object (X7) with loading factor of 0.923. The tourism object has
many venues to be visited (X9) with loading factor of 0.950. The
life experience (X13) with loading factor of 0.944. This factor is
then called as The Eminent Factor.
The second factor had eigenvalue of 2.564 with variance
percentage score of 2.564 which determined the tourist
perception in visiting Trunyan Village Tourism Object. This
factor was formed by the availability of supporting facilities such
as the ticket fare which is equal to the quality (X2) with loading
factor of 0.974, Promotion through internet media (X5) with
loading factor of 0.918, Purchase ability (X12) with loading
factor of 0.976. This factor is then called as the Additional Value
Factor.
The third factor had eigenvalue of 1.052 with variance
percentage score of 8.763 % which determined tourist perception
to visit Trunyan Village Tourism Object. This factor was formed
by the condition and politic relationship of the country which is
being visited (X6) with loading factor of 0.596, the variable of
tourist intensity who conducts a tourism visit (X10) with loading
factor of 0.587, Family group (X11) with loading factor of 0.874.
Therefore, the third factor is called as The Supportive Factor.
This factor was formed by the variable of quite comfortable
buildings, variable of company’s strategic location, and variable
of famous company name.
From the three factors above, the eminent factor was the
most dominant one which determined the tourist perception to
visit Trunyan Village Tourism Object. It was formed by the
provided buildings and facilities have a high historical value,
location which is easy to be reach, promotion through travel
agency, the security of the area and the surrounding of the
tourism object, and Bali has many tourism objects.
e. Model Accuracy Test
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Model accuracy test is the final step in factor analysis.

Model accuracy can be identified from the size of residual which
occurs. Residual is the correlation difference which is observed
and produced based on the result of factor matrix estimation. In
this research, the residual percentage was 9 % or as many as six
residuals based on the absolute score > 0.05. It indicated that
the model had an accuracy of 91 % on error level of 5 % or in
other words, the model can be accepted with the accuracy of 91
%.
E. Conclusion
Based on the analysis results and discussion above, it can be
concluded that factors which influenced the tourist to visit
Trunyan Village which gave a brand image were the eminent
factor, the additional value factor, and the supportive factor.
From the three factors above, the eminent factor was the most
dominant factor which determined the tourist perception in
visiting Trunyan Village Tourism Object which was formed by the
provided buildings and facilities have a high historical value, the
location, the promotion through travel agency, the security of the
area and the surrounding of the tourism object, the tourism object
has many venues to be visited, and the life experience.
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ROLE OF PUBLIC DISTRIBUTION SYSTEM IN ANDHRA

PRADESH AN ANALYSIS
Vanguru Naga Satyanarayana M. Sudhir

Research Scholar Associate Professor
Department of Economics Nirmala College of Pharmacy
Acharya Nagarjuna University, Mangalagiri
Guntur
Dr. M. Rajasekhara Babu

Retired Principal,
VTJM & IVTR Degree College
Mangalagiri
Abstract
The effective functioning of Public Distribution System ensures food
security in any state. The main objective of this paper is to examine the
role of Public Distribution System in achieving the food security. In
this paper a small attempt is made to examine the brief review of
welfare schemes in Andhra Pradesh and finally to find out the
drawbacks in the system and to recommend suggestions to Public
Distribution System more effective.
Introduction
Andhra Pradesh is one of the states pursuing a vigorous Public
Distribution policy. Among the states, Public Distribution Systems that
have tried Public Distribution Systems to cover rural areas are Kerala,
Tamil Nadu and Andhra Pradesh. Of these states, Kerala is always
deficit, while Tamil Nadu is marginally deficit in years due a bad
rainfall. While Andhra Pradesh on the other hand, is a surplus state,
encompassing large surplus as well as deficit tracts within its area. It is
the government's primary duty to look that all its people should live
with maximum quality. The Public Distribution System initially
visualizes in terms of checking inflation and protecting vulnerable
section from the vagaries of the market mechanism. PDS is an
organizational asset of considerable significance improving the
nutritional status of poorer groups touching the one of the antipoverty
programmes, PDS has a direct bearing on their success. The concept of
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minimum needs coupled with enlarging scope of PDS, serves to

underline its dynamic character: As we move from the regions of
primary poverty to a happier position, the system can be used to
concretize the quest for "quality of life" as it may be defined from time
to time in politico-administrative terms.
Objectives
The following objectives for study are given below.
1. To assess the impact of Public Distribution System on food security.
2. To examine the brief review of welfare programmes introduced in
Andhra Pradesh.
3. To find out the drawbacks in the system and make suggestions to
PDS more effective.
Methodology
This study has been conducted on the basis of secondary data. The
secondary data has been compiled from the Planning Commission,
various journals, books, internet sources and other published papers
etc.
Public Distribution System in Andhra Pradesh
India’s public distribution system (PDS) is perhaps the largest of its
kind anywhere in the World. The Public distribution system is among
the most important food security programmes of government of India.
In fact, the PDS in the country to facilitates the supply of food grains to
the poor at a subsidized price. The targeted public distribution system
was introduced in the state of Andhra Pradesh and elsewhere in the
country in 1997 with a view to eliminate hunger. The PDS supplies
essential commodities like rice, kerosene, sugar, palmolein oil, wheat to
the poor at subsidized prices. The Telugu Desam was introduced cheap
rice at Rs.2 per Kg in the state. The fair price shops are the major
outlets under public distribution system. The number of fair price
shops are functioning in the state are shown in table-1.
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Fair Price Shops in AP as on 1st August 2017
Total No. of FPS

SI. No. of FPS Dealers
District Name
No
1 Srikakulam 2079 2000
2 Vijayanagaram 1400 1283
3 Visakhapatnam 1612 1572
Rural
4 Visakhapatnam 493 487
Urban
5 East Godavari 2698 2507
6 West Godavari 22002 2141
7 Krishna 2212 2112
8 Guntur 2725 2514
9 Prakasam 2141 1661
10 Nellore 1896 1792
11 Chittoor 2852 2550
12 Cuddapah 1737 1330
13 Anantapur 2970 2787
14 Kurnool 2414 2208
Total 29431 26950
Source: Civil Supplies Dept. AP – Gollapudi
Table -1 show that district wise number of total fair price shops and
fair price shops dealers. Table -1 reveals the fact that total number of
fair price shops and fair price shops dealers has been increasing in few
districts. The total number of fair price shops and fair price shops
dealers in AP are 29,431 and 26,950 respectively in 2017. Among the
districts, West Godavari having highest number of fair price shops
which accounts for 22,002, Anantapur with 2,970 followed by Chittoor
with 2,852 fair price shops. Lowest number of fair price shops found in
Visakhapatnam Urban with 493, Vijayanagaram with 1400 followed by
Visakhapatnam Rural with 1,612.
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Among the districts Anantapur, Guntur and East Godavari districts

stood in first three places with regard to fair price shop dealers with
2,787, 2,514 and 2,507 respectively. Visakhapatnam Urban,
Vijayanagaram and Cuddapah having lowest number of fair price shop
dealers with 487, 1,283 and 1,330 respectively in 2017.
Rationalization Fair Price Shops
Rationalization of existing F.P. Shops has been done to ensure
effective functioning of PDS, and enable card holders have easy access
to fair price shops without having to travel long distances. Rural
areas: 400 to 450 BPL and 50 Pink ration cards are attached to each
F.P. shop in rural area. Urban Areas: 500 to 550 BPL and 250 Pink
ration cards are attached to each F.P. shop in urban areas. Municipal
Corporations: 600 to 650 BPL and 250 Pink ration cards are attached
to each F.P. shop in Municipal Corporations. The following are the
number of category wise ration cards for which allotment issued in
November, 2017 are shown in table -2
Table – 2 Category wise Ration Cards as on November 2017
SI. No Type of Ration Cards Status

1 White Ration Cards 1,33,01,564
2 Antyodaya Anna Yojana Cards 9,15,943
3 Annapurna Cards 11,797
Total No. of BPL Cards 1,42,29,304
Source: Status notes – Nov.2017 – Civil Supplies Dept. Gollapudi
Table – 2 show that category wise ration cards as on November 2017.
The total number of BPL cards in AP was 1, 42, 29,304. Out of 1, 42,
29,304, BPL cards 1, 33, 01,564 are white ration cards, 9, 15,943
Antyodaya Anna Yojana cards and 11,797 are Annapurna cards.
Public Distribution System and Food Security in Andhra
Pradesh
It is now well recognized fact that the availability of food grains is not a
sufficient condition to ensure food security to the poor but the
necessary condition is that the poor should have sufficient means to
purchase food. Hence, PDS subsidized food grain supply to poor, is very
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important in providing food security. In this context, we want to see

how far functioning of PDS is effective, in providing food security to
poor household.
Through PDS, food grains such as rice and wheat are supplied at a
subsidized price; on an average each household will be receiving 25 kgs
of rice. Present section analyses access to PDS in the state of Andhra
Pradesh, which is one of the main intervention of state to ensure food
security with subsidized lending to poor sections of the society.
The center allocates food grains to states on the basis of the identified
BPL population, the availability of food grains stocks, and the quantity
of food grains lifted by states for distribution under TPDS. Table -3
indicates the statement showing procurement of paddy, allotment and
distribution of rice under public distribution system.
The total procurement of paddy during 2012 -13 to 2014 -15 shows an
appreciable variation over 2015 -17. Procurement of paddy was
recorded at 68, 87,998 MT, during 2012 -13 was increased by 94, 78,969
MT in 2014-15. Procurement of paddy during 2012-13 to 2014 -15 was
much higher due to larger production and sharp increase in the
procurement prices. During 2016 -17 the procurement of paddy was
decreased by 55, 57,778 MT as against 64, 71,447 MT in 2015 -16.
The allotment and distribution of rice under different schemes – BPL,
AAY, Annapurna in all the three schemes the total allotment was quite
less from 2012 -13 to 2014 -15 since the distribution was meant for all
23 districts of combined AP. The total quantity of rice distributed
among all the 23 districts of combined AP are more or less same from
2012 -13 to 2014 -15 with minor variations. Similarly from 2014 -17 the
allotment of rice was higher than the distribution in 13 districts of AP.
From the above analysis we can say that the PDS in AP not that
effective with regard to distribution to ensure distributional equity.
Table -3 Statement showing Procurement of Paddy, Allotment
and Distribution of Rice under PDS
Year Procurement Allotment Total quantity of Remarks
of Paddy (in MTs) Rice Distributed (in
MTs)
2012 - 6887998 3950734 3922274 23 Districts of
13 Combined AP
Distribution shown
2013 - 7690267 4058447 3941548 23 Districts of
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14 Combined AP
Distribution shown
2014 - 1020068 1012901 (Up to June Up to June, 2014, 23
15 2014) Districts of combined
9478969 AP Distribution were
shown
1752818 1635221 (From July, 13 Districts of AP
2014 onwards)
2015 - 6471447 2550857 2367419 13 Districts of AP
16
2016 - 5557778 2655183 2269426 13 Districts of AP
17
Source: Civil Supplies Dept. AP – Gollapudi
Welfare Schemesin AP: Andhra Pradesh state is one among the
states advanced in the PDS and as introduced a number of innovative
novel schemes towards achieving efficiency efficacy of PDS.
Subsidy Rice Scheme: Government of Andhra Pradesh has given top
most priority to supply of rice at subsidized rate to below poverty line
families through Targeted Public Distribution System line (TPDS).
Since 1-11-2011, rice is being supplied at Rs. 1 per Kg. to all white
cardholders and AAY cardholders. It is an important constituent of the
strategy for the up-liftment of below poverty line (BPL) population.
The endeavor of the Government is to implement TPDS effectively,
efficiently and transparently for the best advantage of beneficiaries.
Amma Hastam Scheme: Government of Andhra Pradesh launched a
scheme called “Amma Hastam” from 11- 04 -2013. Under this scheme
nine Essential Commodities Viz. 1 liter Palmolive Oil 1 Kg Red gram
dhal, ½ Kg Sugar, 1 Kg Wheat, 1 Kg whole meal Atta, Chilly 250 Grams
Powder, ½ Kg Tamarind, 100 Grams Turmeric Powder and 1 Kg
iodized Salt are being supplied in packed form at Rs. 185/-
The main objective of the scheme is to provide relief to BPL families
from price rise and to ensure supply of unadulterated quality and
correctly weighed commodities in a packed form. The cardholders can
get benefit of Rs. 107/- per month against the present open market
price of Rs. 292/ for the essential commodities. In fact, it is a boon to
the poor families who afford at concessional rates.
Social Welfare Institutions (SWI) and Social Welfare Hostels
(SWH): Central issue price of rice under SWI/SWH is Rs. 565/- per
quintal. i.e. at BPL rate. The rice is being released to meet the
requirement of all Hostels, Ashram Schools, and Residential Junior
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Colleges of ST, SC and BC categories and other institutions under the

control of social welfare department. And also to homes, hostels for
Physically Handicapped, Residential Schools for deaf and blind for boys
and Girls, Handicapped children, State Home, Service Home, Children
Home, Collegiate girls Hostels, Crech centers (to the children of
Agriculture labour women) Balwadies, Regional Training Centers,
Women Welfare Branches, Mobile Creches, Women and Child Welfare
Centre and Vocational Training Centers, which are under control of
Women Development and Child Welfare Departments. Rice is supplied
at Rs. 400/- per Quintal, to the above institutions. The normal monthly
allocation made by Government of India was 5772.260 MTs for Social
Welfare Institutions as against the state requirement of 17474.992
MTs. of rice.
Mid Day Meal Scheme: Government of India allotted a quantity of 1,
38,232 MTs, of rice under the MGNREG scheme at free of cost for
primary and upper primary classes, to meet the requirements under
cooked meal programme for the year 2012-13. Rice is being released to
DWCRA women and Self-help groups and through Fair Price Shops as
allotted by the district collectors. In respect of Hyderabad and
Visakhapatnam Metropolitan Cities, rice is being released to Nandi
Foundation, an NGO, directly, for supply of cooked meal to the schools.
It has been decided by the Government, to release the rice stocks from
MLS point to school point to Schools points avoiding F.P. shops point,
to ensure proper quality and weighment. In respect of IX and X classes
the state Government meets the expenditure of cost and transport and
handling charges.
Antyodaya Anna Yojana Scheme (AAY): This scheme was
launched in Andhra Pradesh February, 2001 for the poorest of the poor
families in order to make TPDS more focused and targeted towards this
category of people. AAY identified one crore poorest of the poor families
from amongst the BPL families covered under TPDS and providing
them food grains at a highly subsidized rate of Rs.2/ per Kg. for Wheat
and Rs. 3/ per Kg for Rice. The scale of issue which was initially fixed at
25 Kg per family per month has been increased to 35 Kg per family per
month with effect from April, 2002. This scheme was expanded in 2003-
04 by adding another 50 lakh BPL households headed by widows,
terminally ill persons, disabled persons or persons aged 60 years or
more with no assured means of subsistence or societal support. At
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present 9.75 lakh AAY families are being supplied 35 Kg rice at Rs. 1
per Kg per family as against the target of 9.08 lakh AAY families. A
quantity of 34,217 MTs of rice is being supplied under AAY scheme at
Rs. 1 per Kg against the allotment of 31,798 MTs per month.
Annapurna Scheme: The Annapurna Scheme was announced by the
Finance Minister in his budget speech for the year 1999 – 2000 to
provide food security to those indigent senior citizens who are not
covered under the TPDS and who have no income of their own.
Through this scheme, it is intended to provide 10 kgs of good grains per
month free of cost to all such persons who are eligible for old age
pension under the National Old Age Pension Scheme (NOAPS), but are
not receiving it. The Gram Panchayat would identify, prepare and
display a list of such persons after giving wide publicity to the scheme.
Wheat Based Nutrition Programme: The scheme is operated by the
Women Development and Child Welfare (WD & CW) Department in all
districts except Guntur, Prakasam, Kurnool, Anantapur, Hyderabad
and Adilabad and popularly known as Integrated Child Development
Scheme (ICDS) / Anganwadi Centres (AWCs).
Problems of PDS
The Public Distribution System of Andhra Pradesh is considered one
of the successful systems. However, it has some of the drawbacks which
call for corrective measures of the system is to be more purposeful.
First, there is a strong care for making the system target group
oriented. Originally, it was meant to cater to poorer people in the urban
as well as the rural areas in fact the poor slum dwellers and the
immigrants remain largely out-side the preview of the P.D.S. Secondly,
the FPS are concentrated in urban areas, Thirdly, what the vulnerable
groups prefer to consume E.g. Coarse grains are not supplied at the
FPS. There are over 5 lakhs villages in the country, in addition to small
and other towns where nearly 20-40 percent population is poor. Now
three lakhs of FPS would mean that nearly half of the villages have no
F.P.S.
It is evident that this is still an unfulfilled promise for a long time that
there would be one FPS for every 2,000-rural population in a radius of
3 kms. The food grain supplies through P.D.S. are not even catering to
50 percent of the food needs of the poor.
 Irregular supply of ration items.
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 Some times the ration items are sold in black market by the
dealers in collusion with and authorities.
 Corruption at various levels of civil supplies department is
rampant.
 Some times the dealers are not in a position to pay the money
and lift the stocks due to inadequate credit facility.
 Transportation losses.
 Short of storage facility
 Demand of tips to godown keeper and transporters
 Short supply.
 Improper allotment of ration cards. It was found that some of
the people who belong to creamy layer also have ration cards
while on the other hand some people who actually deserved do
not have the ration cards.
 Poor quality of goods.
 There were long queues.
 The shops were open at the discretion of the Dealer and the
timings were also not properly maintained.
 Uncertainty of stock arrival at FPS.
Suggestions
Suggestions for the improvement of the public distribution system
relating to the policy and operation are:
 Allotment of quota should be made on practical basis.
 The item covered by PDS should be increased.
 Cards should be issued to all needy people and stringent action
should be taken against those people who own the cards even
though they are well off.
 Good quality commodities should be supplied.
 Necessary measures should be taken that the F.P.S. should be
open all round the month and the timings should be specified
and implemented strictly.
 Credit facility should be provided to all poor dealers.
 Quantity should be more and timely distribution must be there.
 Storage facility at gram panchayat level should be provided.
 Steps should be taken to bring the gaps in structural and
management dimension of functions of fair price shops.
 Necessary steps should be taken to create awareness among
consumer about the working and organization of P.D.S.
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 Stringent action should be taken against the officers and

Dealers indulge in malpractice.
Conclusion
Andhra Pradesh State is identified as the “Bejeweled Rice Bowl
of India”. In Andhra Pradesh, Agriculture plays a crucial role in its
economy, with the largest segment of the population being dependent
on agricultural sector for employment. Rapid and sustainable growth in
agriculture has been identified not only as a key driver for economic
development but also for achieving self-sufficiency and ensuring food
security to the people. The Global Hunger Index reveals that nearly 50
percent of Worlds hungry live in India. The PDS has helped to reduce
poverty and it improves food security of the poor. The targeted public
distribution system aimed at providing essential commodities to the
poor both in rural and urban areas at concessional rates. However, very
often PDS is being criticized for in effectiveness and in efficiency in
achieving its objectives, the government of Andhra Pradesh has been
reducing the burden of subsidies on one hand and on the other it has
drastically reduced the number of white ration cards during 2013-14. A
new study based on NSSO data, has estimated that 46.7 per cent or
25.9 million metric tonnes of the grain (rice and wheat released
through the PDS, did not reach the intended beneficiaries in 2011-12.
The study further reveals that Andhra Pradesh and Tamil Nadu are
among the better performers with 11.1 percent and 12.2 percent
leakages respectively. The Shanta Kumar Committee recommendations
are completely against the implementation of TPDS and Food Security
Act. It wants to reduce the coverage to 40 percent of the population as
against 67 percent. The TPDS is no doubt an instrument which reduces
poverty and ensures the food security to the millions of helpless poor.
References
1. Venugopal, K.R., 1992 Deliverance from Hunger, The Public Distribution
System in India. Sage Publications, New Delhi.
2. Rahim. C.A. Management of Public Distribution System in Andhra
Pradesh: Administrative arrangements in delivery system, Rural
Development. Vol. No.16 (1), 1997.
3. R.N. Chopra, operational problem of Food Corporation of India as a
supplier to the public distribution system – Public distribution system;
Evolution, Evaluation and prospects. Ed. By N. Dhalokia and R. Khurana,
oxford and IBH pub. Co., in New Delhi, 1979.
www.ijmer.in 127
4. Ibid. p.111.
5. K.S. Mathew, Role of consumer crops in the distribution of consumer
goods especially essential commodities - Public distribution system;
Evolution, Evaluation and prospects. Ed. By N. Dhalokia and R. Khurana,
oxford and IBH pub. Co., in New Delhi, 1979.
6. Ibid. p.178.
7. Madhav P. Kacker, managerial aspects of fair price shops - Public
distribution system; Evolution, Evaluation and prospects. Ed. By N.
Dhalokia and R. Khurana, oxford and IBH pub. Co., in New Delhi, 1979.
8. Ghumaan, G.K and Dhiman, P.K: Role and effectiveness of Public
distribution system in providing food security in India, Indian Journal of
Research, and Vol.3 issue. 5 June 2013. P.25
9. Indian Food Banking Network A food security foundation India initiative,
www.india food banking.org/ hunger.
10. Reetika Khera: Revival of the Public Distribution system: evidence and
explanations. EPW, November, 5, 2011.
11. GOI : Tenth Five Year plan 2002-07, Planning Commission, New Delhi,
2001,P.365
12. Bhaskar Dutta and Bharat Ramaswami (2001) “Targeting and Efficiency
in the Public Distribution System: Case of Andhra Pradesh and
Maharashtra”, Economic and Political Weekly, No.18, May 5th-11th.
13. Abusaleh Shariff Ananta C Mallick (1999), “Dynamics of Food Intake and
Nutrition by Expenditure Class in India”. Economic and Political Weekly,
Vol.34, No.27, pp.1790-1800, 3rd – 9th ‘July.
14. Alessandro Tarozzi (2005), “The Indian Public Distribution System as
provider of food security: Evidence from children nutrition in Andhra
Pradesh., ELSEVIER European Economics Review, 49, 1305-1330.
15. Vide G.O.MS. No.22 CA, F&CS (CS.III) Department, Government of
Andhra Pradesh Dt. 6-6-2008.
16. Vide Information on PDS – given under right to information Act – 2005,
by the Office of the commissioner of Civil Supplies, Hyderabad to Sri D.
Gopal Reddy dt. 7-10-2009.
17. Towards a Hunger Free India, www.rediff.com
18. Syed Safid Hussian yaidi, Economic problems of India, Namerk
Publications Private Limited, New Delhi, 1994.
www.ijmer.in 128
HERITAGE TOURISM: ECONOMIC VALUATION OF TAMAN

SOEKASADA UJUNG IN KARANGASEM, BALI
Dewa Agus Yuda Ariawan1, I WayanArdika2, Made Antara3,

Made Suradnya4
1) Student of Tourism Doctorate Program of Udayana
University,
e-mail: dwagus.ip@gmail.com
2) Promoter and Professor at Tourism Doctorate Program of
Udayana university
3) Co-Promoter and Professor at Tourism Doctorate
Program of Udayana University
4) Co-Promoter
Abstract
This research aims to estimate TEHBV of Taman Soekasada Ujung
(TSU) as the heritage tourism in Karangasem, Bali. Bali Government
tourism office (2017) has set some historical buildings for heritage
tourisms, e.g. Goa Gajah in Gianyar Regency, Kertagosa in Klungkung
Regency and TirtaGangga together with Taman Soekasada Ujung in
Karangasem Regency. Applying quantitative method using TC
approach and WTP, primary data was obtained from 125 respondents
using purposive and accidental sampling. Secondary data was obtained
using documentation technique. The research is conducted at historical
building, Taman Soekasada Ujung with some considerations that (1)
TSU has the highest rate of tourists visit. It is similar to TirtaGangga,
and (2) TSU is one of the heritage tourisms located in Bali. For the
heritage tourism, TSU is not as popular as Goa Gajah in term of tourist
visit number, TSU still has some beneficial values (Grandstaff and
Dixon, 1991). It is found that TEHBV in 2017 is around 1,8 billion IDR.
TEHBV is the total sum of TUV, TOV and TEV.
Key words: TEHBV, heritage tourism, travel cost, WTP
PREFACE
Background
Tourism is generally supported by natural and cultural resources.
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These resources can become tourist destination and attraction.

Tourism industry is one of main sectors and become center of interest
in many developed and undeveloped countries. Tourism is one of the
biggest industries and country’s revenues in the world (Pedersen, 2002:
11). Both tangible and intangible heritage tourism is supported by
cultural heritage resources. The growth of heritage tourism is high and
progressive. Culture inheritance could be said as something positive
and beneficial. This is due to the fact that maintaining culture
inheritance either in the form of tangible or intangible can be profitable
(Ardika,2015: 1). Indonesia is one of the countries in the world that has
culture diversities. Culture heritage has valuable meaning and contains
attraction in tourism industry for knowledge and experience. Heritage
or culture tourism is the sector with progressive growth. The potential
of product in tourism field can be seen from the beauty of various
nature panorama, culture, nation history, unique ceremonies, various
kind of paintings and handicrafts (Payangan, 2014: 5).
Texas Historical Commission/THC (TT: 8) stated that heritage
tourism is one of fastest segments grows from tourism industry and
successfully preserved the resources and increasing local economic.
However, accurate consideration and planning is needed for initiative
or program to develop heritage tourism site.
In this context, culture resources are very important to preserve.
There are number of logical reasons to sustain tourism destination
development. These are:
(a) the fact that competition in tourism destination is very incisive both
globally and nationally. This demands an optimization of the
Excellency or competitiveness (Howie, 2003; Dwyer dan Kim, 2003 in
Damanik and Teguh, 2013: 1-2), (b) if we looked up in national context,
there is a fact that tourism development varies in eachregion.
Bali Government tourism office (2017) has set some historical
buildings as heritage tourism, e.g. Goa Gajah in Gianyar Regency,
Kertagosa in Klungkung
Regency and TirtaGangga along with Taman Ujung in Karangasem
Regency. The number of visit is depicted in Table 1below:
Table 1
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The number of Foreign and Domestic tourists visiting heritages tourist

objects in Bali
Year 2015
Tourist Typology
Heritage Tourist Domestic Foreign Total
Objects
Goa Gajah 37.280 252.868 290.148
TirtaGangga 11.727 47.249 58.976
Taman Soekasada 44.665 24.093 68.758
Ujung
Kertagosa 5.330 38.353 43.683
Source: Bali Government Tourism Office (2017)
Referring to table 1 above, Taman Soekasada Ujung is chosen for the

research object due to the fact that Karangasem regency has more than
one heritage tourist objects and TSU has higher number of visit
compared to TirtaGangga.
The research question is; “what is the economic value of the
historical building of TSU functioning as a heritage tourismobject?”
Theoretical Based Economic Valuation
Economic valuation is the approach to do monetary valuation
toward nature and environment resources. Fandeli (2012: 197) stated
the definition of economic valuation is the approach of economic
assessment that counts the effect of utilization toward environment or
utilization components in environment, thus related to the utilization
or effect economically from environment utilization. Suparmoko and
Suparmoko (2000: 1) added that it is an activity of utilizing
environment. Hence, the function of environment can be maintained or
even can be increased in the way of usage for long term period.
Valuation is the process to do an assessment on monetary toward
things or service related to all aspects. Things or service can be judged
from the aspect that has market price which the utilization value is
directly consumed and indirect usage (Fandeli 2012: 196). In
accordance with valuation, the values can be measured directly from
survey (Rokeach, 1973 in Reisinger, 2009: 125). This valuation can be
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done to evaluate their disagreement or agreement by using Likert scale

(Milbraith, 1980 in Reisinger, 2009:125). Measurement can also be
measured indirectly included asking people about the wanted values or
by describing others (Reisinger, 2009:125).
Djajadiningrat et al., (2014: 48) described that counting the benefit
of a thing or service in term of valuation. Valuation is the procedure to
find out the value of a system and the referred value is the benefit
value which can be enjoyed by society. Costanza in Djajadiningrat et.al.,
(2014: 48), added the definition of valuation is the perception of
someone toward the meaning of an object in period and certain place.
Bateman and Umar in Djajadiningrat et al., (2014: 48) defined
economic valuation pointed to the determination of money value for
assets, things and non-market service in which they can be bought
directly and sold at the market.
Economic valuation is measurement method for transforming
things or non- market service into monetary value (Djajadiningrat et
al., 2014: 48). Besides that, economic valuation can be implemented on
two kind of needs, such as: (a) for evaluating assets or nature wealth,
and (b) for evaluating the effect of an activity toward assets/nature
wealth either positively (benefit) or negatively (Suparmoko et al., 2014:
14). Suparmoko et al (2014: 18-24) further stated some techniques with
general frameworks of economic valuation which consists of: (1) market
price technique, (2) substitute price technique, and (3)
surveytechnique.
Georgiou et al. (1997: 5-7), mentions economic valuation in
accordance with good or bad natural resources and environment by
anthropocentric evaluation process (centered in human). There are two
process needed in economic valuation; measuring and showing the
value of environment assets and to get illustration of giving value
process from peole toward the environment value selection.
On the other hand, Huftschmidt in (Suparmoko 2002: 15)
mentioned various valuation method toward environment effect has
already been implemented in many projects in many countries.
Basically, these methods can be categorized into three kinds of methods
such as: (1) directly method based on market value or productivity, (2)
method using substituted market value or complementary values, and
(3) method based on survey result.
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In economic valuation, in an old technique benefit aspects can be

used to value nature tourism assets. These are: (1) travel cost method,
(2) contingent valuation method, and its approach (3) hedonic price
(Tisdell, 2003: 6). Jantzen (2006: 7) proposed and added that nature
resources valuation and environment seen as part of economic theory
on positive externality in the form of economic benefit for certain
consumer (without paying directly at the mentioned benefit before).
For the classification of benefit in valuation and estimated total
economic value from nature resources and environment can be resulted
from use value and non-use value. Ortolono (1997: 120) stated there are
two general categories of nature resources and environment valuation
method, such as: market based methods which estimate value based on
choice with reality made with contingent valuation methods.
Tietenberg (1998: 66) added contingent valuation methods (CVM) is a
method that dependent on survey to assure how many respondents will
be measured to pay for maintaining the environment to reduce amount
of losses or decrease various type of environment risks proposed by
modern industry society.
Nijkamp (2012: 81-82) proposed that economic valuation of
cultural heritage resource is different from the intrinsic purpose from
culture assets, but aimed to evaluate the purpose of culture assets
owned by society with identification and predicts the implication of use
value from cultural heritage resources. Generally, economic valuation
pointed at used value and service, and also implemented in nonuse
value such as externality of things and services that can give value for
culture assets. Even though these culture assets seriously haven’t been
visited. According to Throsby (2000:28), things and service value
measurement of cultural resources used economic analysis in the way
of giving direct evaluation from cultural resources and economic value.
Throsby (2012: 47) added many characteristics will be influenced in
economic value from historical buildings and the provided service, so
that economic evaluation can be done in order to give the importance of
quality from cultural heritage resources.
Ready and Navrud (2002) said that things and service from
cultural heritage resources similar to the things and service from
nature and environment resources is usually considered as a public
commodity. Thus, in the development to predict nature and
environment resources can also be implemented for commodity and
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services on cultural heritage resources, so that in the way of predicting

the values of commodity and service from cultural heritage resources.
For example, public commodity that isn’t traded at market by using
valuation technique can be enabled by using measurement preference
in its preservation. In accordance with above criteria, Pearce et al. (in
McLoughanet al., 2005: 9) revealed support to describe cultural
heritage resources valuation can also be done by nonuse value such as
can be implemented at nature and environment resources.
Cultural Heritage Resource Value
According to Darvill (in Hardesty, et al. 2009 in Ardika, 2015:
vi), values owned by cultural heritage can be measured by:
1. Use value included the use of cultural heritage for research education,
tourism, commercial symbolic, legitimation and socialsolidarity.
2. Option value related to conservation and the use of cultural heritage in
the future,and
3. Existence value related toemotion.
Literature Review
Similar researches have been conducted to find out economic value
of nature and environment resources, e.g. coral reefs as tourist
attraction. Ariawan (2004) conducted research enittled “Economic
Value of Coral Reefs as Tourist Attraction in Tulamben, Bali: A Study
of Environmental Economics” found out research results as follows:
Based on total average of travel cost using travel cost method
(TCM) for use value obtained in the amount of 43.585.765.700 IDR,
based on total average willingness to pay (WTP) for nonuse value
(NUV) by using contingent valuation method (CVM) obtained in the
amount of 1.579.123.980 IDR and total economic value (TEV) around
45.164.889.680 IDR. It is relevance with the research that will be
undertaken located at the use of monetary evaluation (quantitative)
from travel cost method and contingent valuation method which is
done for cultural heritage tourismresources.
The research about economic valuation which is conducted by
Tania et al.,2011; Welly et al., 2011 (in Suardana, 2015: 12), in the
tourism area of Nusa Penida, Klungkung, Bali focused on willingness to
pay (WTP) from tourists who went for diving and snorkeling. The
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research found out that tourists give positive perception toward

entrance fee with hope of quality service improvement. The relevance
with this research is in the use of willingness to pay (WTP) approach as
one of monetary economic valuation for nonuse value at preservation
for supporting sustainable heritage tourism development.
In the research of economic valuation toward World Cultural
Heritage, Pakdeebureeet al., (2011) entittled “Economic Valuation of
The World Cultural Haritage for Promoting Community-Based Flood
Disaster Management: A Case Study of Ayutthaya Historical Park”
obtained result that: total economic value for Ayutthaya Historical
Park in the amount of 8.505.023.942,10 (Bath per year) through
contingent valuation method and travel cost method, and using SWOT-
AHP method for the whole awareness toward Ayutthaya Historical
Park obtained strength factor of 50,86% at main priority for perception
from some experts including cultural heritage economic value, tourist
object and world cultural heritage sites. On the other hand, weakness
factor (14.90%) at the last priority for the expert perception including
physical od Ayutthaya Historical Park, community participation and
the way of work in organization authority, opportunity factor (18,78%)
and threat factor (15,45%). The relevance of this research is the
existence of the quantification of total economic value from valuation
technique with travel cost method and contingent valuation method.
In accordance with the explanation above, Armbrecht (2012)
conducted research entitled “The Value of Cultural Institutions
Measurement and Description”, This research focuses on how to
measure the value that perceived by applying contingent valuation
method and travel cost method, a cost-benefit framework, in the
sustainability of institution and describing the value perceived at
cultural institution into use and nonuse value. Its relevance with this
research is at valuation method such as travel cost and contingent
valuation method for use value and nonusevalue.
Concept
Cultural Heritage
The limits of cultural heritage or in this case heritage tourism can be
used as reference such as existed in the Constitution of the Republic of
Indonesia No. 11 Year 2010 about cultural heritage is described that
object, building, or structure that can be proposed as cultural heritage
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objects, cultural heritage buildings, or cultural heritage structures

must fulfill the requirements: (a) the age around fifty years or more; (b)
represent style period at least fifty years old; (c) having a special
meaning for history, knowledge, education and/or culture; (d) having
culturevalueforstrengthennationpersonality.Culturalheritageobjectcan
be:
(a) in the form of natural object and/or man-made objects that can be
used by human, along with the remains of biota that can related with
human activity and/or can be related with human history; (b) moving
or not moving; (c) as a unity or group. Cultural heritage buildings can
be: (a) single element or more; and/or (b) standing free or unite with
nature formation. Cultural heritage structure can be single element or
more elements and/or half or the whole of natureformation.
Heritage Tourism
International Cultural Tourism Charter culture tourism
(http://www.icomos.org/tourism/charter.htmlin Raj, 2004: 67) defined
as follows:
Cultural tourism is defined as “..Domestic and international tourism
continues to be among the foremost vehicles for cultural exchange,
providing a personal experience, not only of that which has survived
from the past, but of the contemporary life and society ofothers..”
Economic Value of Cultural Heritage Resources
Economic value of cultural heritage resources, pointed to cultural
heritage value for Taman Soekasada Ujung as heritage tourism
destination, can be described in the picture belowhere:
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Picture 1
Economic Value owned by Taman Soekasada Ujung
(Source:Darvill in Hardesty, et al. 2009 in Ardika, 2015: vi, modified
by researcher)
Research Methodology
The research object, which is also the location of the research, is
the historical building of Taman Soekasada Ujung at Tumbu Village
Karangasem Subdistrict.
Quantitative method is applied with the use of survey technique. It
is conducted by distributing questionnaire to foreign and domestic
tourists to measure travel cost and willingness to pay (WTP) toward
historical building as heritage tourism on use value (UV), option value
(OV) and existence value (EV). Zechmester, 2000 in Emzir (2012: 39)
stated that survey technique also involved the use of prior set questions
in the form of questionnaire.
The sample used in this research is non random sampling;
purposive accidental and quota sampling. The quota sampleis 125
respondents which divided into 81 of domestic tourists and 44 foreign
tourists taken from number of visit percentage of tourist typology in
2015.
Quantitative Analysis
Referring to picture 1 above, total economic historical building
value (TEHBV) is the sum of use value (UV), option value (OV) and
existence value (EV) adopted from Pearce and Turner (1990: 131).
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Total economic historical building value (TEHBV) can be

explained as follows:
TEHBV = TUV + TOV+TEV (1)
TEHBV = total economic historical buildingvalue
TUV = total use value or total use value included the use
cultural heritage for research, education, tourism,
recreation, commercial, symbolism, legitimation and
social solidarity. Heritage tourism estimated by travel
cost method(TC).
TOV = Total option value related to conservation and the
utilization of cultural heritage in the future, estimated
by giving direct offer of willingness to pay (WTP) in
questionnaire.
TEV = Total existence value related with emotion. This can
be estimated by giving direct offer of willingness to pay
(WTP) inquestionnaire.
It is then continued by finding out the result of prediction
toward number of visits in the next year by using parabola trend with
the equation of Y’ = a + bX
+ cX2 (Supranto,1989:192) ..................................... (2) in which X

=time
After having the prediction result toward number of tourist
visit accordingly, it is continued to search total use value (UV), done by
finding out travel cost average, ATC (the average of travel cost),
consists of option value (OV) and existence value (EV) done by finding
out the average of willingness to pay (AWP) adopted Grandstaff
formula and Dixon, 1991 modified in Then, J. et al., TT described
asfollows:
……………………………………(3)
……………………………………….(4)
……………………………………….(5)
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Where:
TTC = Total travel cost (inrupiah)
ATCi = the average of travel cost (inrupiah)
TWP = total of willingness to pay (TWP1) and existence value
(TWP2) in rupiah
AWPi = the average of willingness to pay (in rupiah) ni
= number of respondent filling the questionnaire N
= number ofrespondents
T = number of prediction toward tourists visit in2017
Result and Discussion

Taman Soekasada Ujung is located at the northern park of
ManikanPura and surrounded by panorama of hills and Mount Agung.
At west is the highway, some houses, mosque and primary school
building. At east side is the highway, rice fields, and coconut field and it
is also the entrance to the park location that can be reached by passing
one of three gates,: east, south, and top gate (Karangasem Regency
Culture, Tourism and Art Office,2004).
Picture 2. The Porch at Taman SoekasadaUjung.
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Total Economic Value that Owned by Taman Soekasada Ujung

as Heritage Tourism
Finding out total economic value at Taman Soekasada Ujung as
heritage tourism (total economic historical building value, TEHBV) in
2017, there will be some steps applied such as (1) looking for the
number tourist visit from the result of prediction using parabola trend
by studying data of the last 10 years tourist visit. Then, finding out for
2016 and 2017 tourist visit, (2) economic valuation in each obtained
value such as use value (UV) from travel cost (TC), option value (OV)
from willingness to pay (WTP) and existence value (EV) from
willingness to pay. Furthermore, finding out the average of each value
in rupiah from 125 respondents visiting Taman Soekasada Ujung based
on quotasampling.
Tourist Visit Prediction
The data of tourist visits in Taman Soekasada Ujung for the last
eleven
(11) years. From 2005 until 2015, Bali Government Tourism Office
(2017) remarked in a row as follows: 21.574 visits (2005), 12.666 (2006),
15.712 (2007), 21.755 (2008), 27.875 (2009 and the result of
interpolation), 33.995 (2010), 70.167 (2011), 99.060 (2012), 109.221
(2013), 120.335 (2014) dan 68.758 visits in 2015.
Referring to the data above, the prediction of tourist visits for
2016 and 2017 will be found by using trend parabola formula
(2ndformula) or using quadratic trend caused by up and down of
number of visit in the recent data. SPSS IBM version 20 is used in
processing data. The results are Fresult= 8,568 (significant 0,010 and
this means 1,0 % < 5%). R2= 68,2% (0,682). It is found out that 68%
time trend affected positively toward number of visit and the other
31,8% is affected by another variable that isn’t included in analysis
(see: attachment no. 37).
Adjusted R2= 60,2% (0,602). Furthermore, each of equation coefficient

shows that tourist visit prediction using parabola trend equation of Y’
= 48.247 + 10.654X + 387X2 and this equation model is valid.
Referring to the equation above, tourist visit prediction in 2016
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(X=6) can be counted by equation: Y’ = 48.247 + 10.654X + 387X2. It

is Y’ = 48.247 +
10.654(6)+387(62)equalto126.087touristvisit.Touristvisitprediction
for
2017, will be analyzed using the same equation as above and only
replaced Xvalue with 7. It is Y’ = 48.247 + 10.654(7) + 387(72) equal to
141.766 tourist visit.Therefore, tourist visit prediction for 2016 is
126.087 and for 2017 is 141.766.
Based on this parabola trend calculation, the number of tourist visit
will be increased in the next years.
Use Value, Option Value and Existence Value
Use value (UV) of Taman Soekasada Ujung as heritage tourism
through botdomestic and foreign tourist visits can be measured by
finding out the average of travel cost (TC) from 125 respondents.
Using primary data process, the average of travel cost (TC) from
tourists is 13.317.593 IDR. There are some currencies converted into
Rupiah, for instance Australian Dollar, US Dollar, Pound sterling and
Euro. The conversion into Rupiah from each currency above referred to
http://www.xe.com/currency/accessed on October 6th, 2017 and
https://coinmill.com/GBP_calculator.htmlaccessed on October
2nd,2017.
The next creator of economic value is option value (OV) in
Taman Soekasada Ujung measured using the willingness to pay (WTP)
of both domestic and foreign tourists when Taman Soekasada Ujung
has been conserved and it is declared for cultural heritage in the future.
From the primary data processed, it is found out that the average of
willingness to pay (WTP) of tourists is 48.291 IDR.
Existence value (EV) is the economic value of Taman Soekasada
Ujung. This value is also obtained from willingness to pay (WTP) from
tourists with the condition that Taman Soekasada Ujung has already
given the tourists an emotional touches from aesthetic symbols owned
TSU as cultural heritage. Analyzing the primary data source, it is found
out that the average of willingness to pay (WTP), the existence value
(EV) is 49.033IDR.
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To find out the total economic historical building value

(TEHBV) from Taman Soekasada Ujung from each category of total use
value (TUV), total option value (TOV), and total existence value (TEV),
it is formulated asfollows:
1. Total use value of Taman Soekasada Ujung as heritage tourism in 2017
is 13.317.593 IDR X 0,976X 141.766 tourists = 1.842.670.323.896 IDR.
(appropriate with the 3rdformula)
2. Total option value (TOV) of Taman Soekasada Ujung as heritage
tourism in 2017 is 48.291 IDR X 0,832 X 141.766 tourists =
5.695.890.226 IDR. (appropriate with 4thformula)
3. Total Existence Value of Taman Soekasada Ujung as heritage tourism
in 2017 is 49.033 IDR X 0,784 X 141.766 tourists = 5.499.750.426 IDR
(appropriate with the 5thformula)
Based on the calculation for the total of three values above and
referring to the formula (1) for the total economic value of historical
building is:
TEHBV = TUV + TOV + TEV:
= 1.842.670.323.896 IDR + 5.695.890.226 IDR + 5.449.750.426
IDR
= 1.853.815.964.548 IDR
The number above shows that total economic value of historical
building (NEEBT) owned by Taman Soekasada Ujung as heritage
tourism in 2017 is 1.853.815.964.548IDR.
ResearchImplication
The implication resulted from this research strengthens and to
maintain the economic value of historical building as heritage tourism
and practically can give contribution to the management to understand
the potential economic value of the site, TSU in thefuture.
Conclusion and Recommendation
Total economic historical building value (TEHBV) owned by Taman
Soekasada Ujung as heritage tourism in 2017 is 1.853.815.964.548 IDR
deriving from the sum of total use value, total option value and total
existence value.
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It is recommended to maintain and preserve the tangible and

intangible cultural heritage resources as heritage tourism for the
benefit of economic value from the increasing number of tourist visit.
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ETAP SAK IMPLEMENTATION IN SME IN TABANAN

REGENCY
Ni Nyoman Ayu Suryandari, SE.,M.Si.,Ak.,CA

Daniel Raditya Tandio, SE., Ak., M.Si
Abstract
SAK ETAP is a standard that refers to SMEs specific business
financial statements or entities that do not have significant public
accountability, where financial statements are made not public. SAK
ETAP is effective as of January 1, 2011. This study aims to determine
the implementation of SAK ETAP in SMEs in Tabanan Regency in
terms of entrepreneur education, length of business, business credit,
information technology and perception of SME entrepreneurs. The
sample in this study consisted of 94 units of SMEs registered in
DISPERINDAG, Tabanan Regency. Sampling in this study uses
purposive sampling method, and uses the Slovin formula to determine
the minimum sample size. Data collection methods with questionnaires
and interviews. Data analysis used in this study is logistic regression
analysis. The results showed that the level of education, the number of
business loans and information technology had a positive effect on the
implementation of SAK ETAP. While the business duration and
perceptions of entrepreneurs do not affect the implementation of SAK
ETAP.
Keywords: Business Characteristics, Perception of Entrepreneurs,

SME, SAK ETAP
I Introduction
It is recognized that micro, small and medium enterprises (SMEs)
play a very vital role in development and economic growth. Not only
does the business group absorb the most labor force so that it becomes
a source of employment or income growth, but also in many countries
its contribution to the formation or growth of gross domestic product
(GDP) is very large (Tambunan, 2009). In 2016, SMEs that have high
resilience will be able to sustain the country's economy, even during
the global crisis. In 2016 the number of SMEs in Indonesia reached
57.89 million business units and still continues to grow, spread
throughout Indonesia. SMEs in Bali Province have increased from
year to year, from the data of the Bali Provincial Office of
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Cooperatives and SMEs, the number of SMEs in 2015 reached 265,558

units consisting of the informal sector 203,119 units and the formal
sector 61,648 units. The high growth of SMEs in Bali has a positive
impact in terms of employment, even distribution of development,
especially in the economic field and an increase in Gross Regional
Domestic Income (Sutandra, 2015).
But behind the glorious achievements shown by the existence of
these SMEs, in reality there are still various problems and constraints
faced by SMEs, including classic obstacles namely the quality of
human resources (HR), weak business networks and market
penetration capabilities, the mentality of SME entrepreneurs, lack of
transparency between the early generation of SME builders for the
next generation, legality, and financial problems (Handayani, 2009).
In the research of Tihomola (2013) proved that there are several
problems that cause failure in SME. These problems include low
levels of education and lack of training, poor marketing, bank
reluctance to provide loans to SMEs, the use of business assets for
personal use, the amount of security costs (illegal fees), and the lack of
support from the government.
From the data on the number of SMEs in Bali, there are in
Tabanan Regency the number of SMEs reached 8591 units. However,
SMEs in Bali, especially Tabanan Regency, still face various obstacles
to the weak market network, low quality of human resources,
production and technology problems and capital problems. until now
there are many financing programs for SMEs both from the
government and banking. To overcome obstacles in meeting capital
for SMEs the Provincial Government of Bali established the Regional
Credit Guarantee Company (Jamkrida) Bali, which is expected to
overcome the problem of lack of business capital for SMEs whose
businesses are feasible but have difficulty accessing credit due to
limited collateral (Sutandra, 2015).
Along with the rapid development of businesses in Indonesia, the
Financial Accounting Standards Board (DSAK) has ratified the Entity
Financial Accounting Standards without Public Accountability (SAK
ETAP), aimed at business entities that do not have public
accountability, such as SME entities. SAK ETAP is effective as of
January 1, 2011 but the application before the effective date is
permitted (IAI, 2009: 166). Entities without public accountability are
entities that do not have significant public accountability and issue
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financial statements for purposes but (general purpose financial

statements) for external users such as owners who are not directly
involved in business management, creditors, and credit rating
agencies (IAI, 2016). The presence of SAK ETAP is expected to
provide convenience for SMEs in presenting financial statements.
SAK ETAP provides convenience for an entity compared to the
General SAK with more complex reporting provisions (Hayadi, 2010).
According to the Financial Accounting Standards of Entities
without Public Accountability, the purpose of the financial statements
of micro, small and medium entities is to provide information on
financial position, performance and cash flow statements of an entity
that is beneficial to a large number of users in making economic
decisions by anyone who is not in a position to request a report special
finance to meet certain information needs (IAI: 2009). Financial
reports have an important role to achieve business success, including
for small businesses (Ervillia, 2009). Financial statements can be a
reliable basis for decision making in the management of micro, small
and medium enterprises, including for pricing decisions, market
development, including for investment decisions (Prastowo, 2009).
Knowledge in the implementation of financial statements is very
helpful for SMEs in conducting business activities. But the limitations
faced by SMEs are the education of entrepreneurs who do not know
accounting or bookkeeping, lack of discipline in recording financial
transactions, to the absence of sufficient funds to employ accountants
or buy accounting software to facilitate accounting accounting
(Rudiantoro and Siregar, 2011). provide perception and
understanding of financial statements, these perceptions will affect
the use of financial statements, namely SAK ETAP. Previous research
conducted by Tuti and Febrina (2015) found that the level of
education did not significantly influence the understanding of SMEs
in preparing financial statements based on SAK ETAP. But in the
research Sariningtyas and Diah (2013) found that there was a positive
influence between the level of owner's education on the needs of SAK
ETAP for SMEs. Malini (2015) found that the level of education had a
positive effect on the application of SAK ETAP.
In addition, businesses that have older ages have more experience
in managing their business and financial statements (Rudiantoro and
Siregar, 2011). With adequate accounting, SME entrepreneurs can
meet the requirements in applying for credit in the form of financial
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statements, evaluating performance, knowing financial position,

calculating taxes and other benefits (Warsono, 2009). Research
conducted by Rudiantoro and Siregar (2011) found that the length of
standing effort had a negative effect on the perception of SMEs in
implementing SAK ETAP. Tuti and Febrina (2015) found that
business duration had a positive influence on the understanding of
SMEs in preparing financial statements based on SAK ETAP.
Many government or private financial institutions such as banks
channel credit to SMEs with certain conditions, one of the conditions
is a business financial report that is used as material for analysis in
lending and in credit applications business financial statements are
needed. In the research of Rudiantoro and Siregar (2011) the low
quality of financial reports negatively affects credit received by SMEs.
Malini (2015) found that the quality of financial statements has a
positive effect on credit received by SMEs.
Understanding information technology provides knowledge and
ease in presenting financial statements. Accounting standards that
can accommodate entrepreneurs can help SMEs in providing quality
financial information. SMEs with good business development
generally make financial statements based on SAK ETAP, in the
financial statements can be seen whether the business is developing
or not, thus the entrepreneur can determine the next step for the
business. Sariningtyas and Diah (2013) found that there was a
positive influence between understanding information technology, on
the needs of SAK ETAP for SMEs.
SME entrepreneurs can have different information in
interpreting the value of accounting information. Real experience will
shape the right perception of accounting information. With the
learning process or experience understanding financial information
systems based on IFRS ETAP can change the perception of
entrepreneurs (Ikshan and Ishak, 2005: 57). Previous research
conducted by Anggara (2012) found that there was a significant
positive effect between the perception of SMEs about SAK ETAP on
behavior in the presentation of financial statements. Rudiantoro and
Siregar (2011) found that the perception of SME had a positive effect
on financial statements. Sofiah and Murniati (2014), Auliyah (2012),
Tarmizi and Bugawati (2013) and Malini (2015) found that the
perception of SME had a positive effect on information from SAK
ETAP, where respondents considered it very important to have
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financial accounting information based on SAK ETAP. So that the

important things examined in this study are "whether the level of
education, length of business, size of business credit, understanding of
business information technology and the perception of SME
entrepreneurs influence the implementation of IFRSs?"
II Theoretical Basis
Perception Theory
A person's perception of something arises because of some stimulus
that affects perception. SME entrepreneurs can have different
information in interpreting the value of accounting information. Real
experience will shape the right perception of accounting information,
with the learning process or experience understanding the SAK ETAP-
based financial information system can change the perception of
entrepreneurs. So the better the perception of SMEs towards the
understanding of SAK ETAP, the higher the implementation of SAK
ETAP in the business financial statements.
Compliance Theory
Financial Accounting Standards (2009) explain that financial
statements are part of the financial reporting process that aims to
provide information about the financial position, performance, and
management of the company that is useful for users to make economic
decisions, thus employers must be consistent and compliant with the
making of financial statements based on accounting standards that
have been used. Entrepreneurs, especially SMEs, must abide by the use
of accounting standards in the delivery of financial statements, namely
compliance with the behavior of SME entrepreneurs in making
financial statements based on SAK ETAP, because SAK ETAP is
specifically used for entities without public accountability such as
SMEs.
Entity without Public Accountability Financial Accounting
Standards (SAK ETAP)
The Indonesian Institute of Accountants on 17 July 2009 has
launched SAK ETAP. However, considering the definition of SME itself
often changes, then to avoid confusion, this standard is named SAK
ETAP. SAK ETAP is effective as of January 1, 2011 but early
application as of January 1, 2010 is permitted (IAI, 2009: 166).
Companies that comply with SAK ETAP requirements must choose
whether to keep compiling financial statements using PSAK or switch
to using SAK ETAP. If the company uses SAK ETAP, the auditor who
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conducts audits at the company will also refer to SAK ETAP. According
to Daniel (2003) in the Financial Accounting Standards module for
Entities without Public Accountability, namely:
1) Entities that do not have significant public accountability;
2) Entities that publish financial statements for general purposes
(general purpose financial statements);
3) Entities with significant public accountability may use SAK
ETAP if permitted by the competent authority.
With the existence of SAK ETAP, small and medium-sized
companies can prepare their own financial statements and can be
audited to get an audit opinion. Simple financial information but
provides reliable information. Providing information about the
financial position, performance and cash flow of the entity that is useful
for broad users who are not in a position to request reports to meet
certain information needs, for example given to: Banks, Owners and
Funders. SAK ETAP was prepared by adopting IFRS for SME with
modifications in accordance with Indonesia's conditions (Daniel, 2013).
Difference between PSAK and SAK ETAP
1) Presentation of PSAK Financial Statements, namely the
statement of financial position, information presented in the
statement of financial position, differentiation of current and
non-current assets and short-term and long-term liabilities,
current assets, short-term liabilities, information presented in
the statement of financial position or notes financial statements
(changes in terms in PSAK 1: Balance Sheet into Statement of
Financial Position, Liability (liability becomes liability), while
with SAK ETAP the same as PSAK, except for information
presented in the balance sheet, which eliminates items such as:
financial assets, investment properties measured at fair value
(ED PSAK 1), biological assets measured at fair cost and value
(ED PSAK 1), long-term interest bearing liabilities, deferred tax
assets and liabilities, non-controlling interests.
2) Profit and Loss Statement, in the PSAK comprehensive income
statement: information presented in the statement of
comprehensive income, profit or loss over the period, other
comprehensive income over the period, information presented in
the statement of comprehensive income or notes to financial
statements. In the same SAK ETAP, PSAK uses the statement
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of comprehensive income statement, SAK ETAP uses the term

profit and loss statement.
3) Presentation of Changes in Equity in PSAK with SAK ETAP are
the same, except for a number of things related to other
comprehensive income.
4) Notes to Financial Statements, in the PSAK Notes to financial
statements, structure, disclosure of accounting policies, sources
of estimation of uncertainty, capital (ED PSAK 1), and other
disclosures. SAK ETAP is the same as PSAK except for capital
disclosures.
5) Statement of Cash Flows, in PSAK of operating assets cash
flows: direct and indirect methods, cash flows of financing
activities, foreign currency cash flows, interest cash flows and
dividends, income tax, non-cash transactions. In SAK ETAP is
the same as PSAK, except for cash flows operating activities:
indirect method, and cash flows of foreign currencies are not
regulated.
6) Consolidated and Separate Financial Statements, in the PSAK
requirements for the presentation of consolidated financial
statements, special purpose entities, consolidated procedures,
separate financial statements, combined financial statements.
The SAK ETAP is not regulated.
7) Accounting, estimation and error policies, in PSAK 25: Net
income or loss for the current period, fundamental misdeeds,
changes in accounting policies, selection and application of
accounting policies, consistency, and changes in accounting
policies, changes in accounting estimates, errors, outposts
normal, profit or loss from normal activities, non-continued
operations, changes in accounting estimates, application of a
financial accounting standard, changes in other accounting
policies. In SAK ETAP has advanced one step compared to
PSAK (there is no "fundamental error" and "extraordinary profit
or loss").
8) Basic Financial Instruments, in the scope of SFAS: financial
assets and liabilities, basic financial instruments, classified at
fair value through profit or loss, held to maturity, available for
sale, loans and loans granted, inpairment uses incurred loss
consept, derecognition, hedging and derivative, scope:
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investment in certain securities, classification of trading, held to

maturity, and available sales.
9) Inventories, in inventory measurement SFAS, inventory costs,
purchase costs, conversion costs, other costs, inventory costs of
providing services, cost measurement techniques, net realizable
value, recognition as expenses for disclosure. Presentation of
inventories in SAK ETAP is the same as PSAK.
10) Investments in associated companies and subsidiaries, in SFAS
scope: associate accounting method, cost method, equity
method, fair value model (ED PSAK 15).Scope: associates and
subsidiaries, accounting methods, associated entities: cost
method, subsidiaries. On SAK ETAP presents the equity
method.
11) Investments in associated companies and subsidiaries, in PSAK
Jointly controlled operations, assets, and entities, accounting
methods, proportional consolidation methods, equity methods,
fair value models (ED PSAK 12: PBA / PBO / PBE). In SAK
ETAP is the same as PSAK except for the accounting method
using only the cost method.
12) Property Investment, in the accounting method PSAK namely
the fair value model, the cost model. In SAK ETAP, the
accounting method is the cost model.
13) Fixed Assets in the presentation of SFAS using a comparative
approach, measurement using a cost model or revaluation
model, measurement of acquisition costs, recognition of
subsequent expenditures, depreciation, no need to review
residual values, depreciation methods, and useful life at the end
of each reporting period, but if there are indications just change.
In SAK ETAP is the same as PSAK unless it does not use the
compoundization approach. Revaluation is permitted if done
based on Government Regulations. This refers to PSAK 16
(1994). No need to review residual values.
14) Intangible Asset in the presentation of the general principle
PSAK for recognition, initial recognition, subsequent
measurement, amortization over the useful life or 10 years,
impairment. SAK ETAP is the same as PSAK, except for
intangible assets obtained from a business combination.
15) Leases in the presentation of PSAK governing agreements
containing leases, principle based classification, lessee financial
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statements and not governing agreements containing leases

(ISAK 8), lessors, estimated liabilities, contingent liabilities,
contingency assets. In SAK ETAP classification of leases:
combination of IFRS for SMEs and SFAS 13, financial
statements of lessees and lessors using PSAK 30 (1990):
Accounting for Leases. The liability is the same as PSAK.
16) Equity in the explanation of equity accounting for non-PT
business entities, equity accounting for materials in the form of
PT, reorganization, difference in revaluation. SAK ETAP is the
same as PSAK, except: reorganization, difference in revaluation.
17) Revenue from PSAK presents sales of goods, sale of services,
construction contracts, interest, dividends and royalties,
attachments to case of income recognition (ED PSAK 23). The
presentation of SAK ETAP is the same as PSAK.
18) Borrowing costs for the presentation of PSAK, namely
components, recognition and capitalization of borrowing costs.
In SAK ETAP, borrowing costs are directly charged.
19) Impairment of Asset Value in PSAK, namely a decrease in the
value of inventories, a decrease in the value of non-inventories,
a decrease in the value of goodwill. The presentation of SAK
ETAP is the same as PSAK, except for space which includes all
types of assets. Does not regulate the impairment of goodwill.
There is an additional decrease in value for loans and
receivables that use PSAK 31: Banking Accounting.
20) Employee benefits in the presentation of SFAS, namely short-
term employee benefits, post-employment benefits, for definite
benefits using PUC, other long-term benefits, termination
benefits. In the presentation of SAK ETAP is the same as the
PSAK, except for the definite benefits of using PUC and if it
cannot, using a simple method.
21) Pph in the presentation of PSAK using deferred taxconcept,
recognition and measurement of current tax, deferred tax
recognition and measurement, using taxpayable concept, no
deferred tax recognition and measurement.
22) Reporting currency in the presentation of PSAK, namely
currency recording and reporting, functional currency,
determination of initial balance, comparative presentation,
currency changes in recording and reporting. In the
presentation of SAK ETAP the same as PSAK, namely
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functional currency, reporting of foreign currency transactions

in functional currency, changes in functional currency (same
principle).
23) Events after the end of each reporting on PSAK namely events
that require adjustment, and events that do not require
adjustment. The presentation of SAK ETAP is the same as
PSAK.
24) Special party disclosures in the presentation of PSAK, namely
the understanding of parties that have special relationships and
disclosures. The presentation of SAK ETAP is the same as
PSAK.
25) Special activities in the presentation of PSAK, namely
accounting, oil and gas accounting, general mining accounting,
securities company accounting, mutual fund accounting,
banking and insurance accounting. The presentation of SAK
ETAP is not regulated.
26) Transitional provisions on the presentation of SAK ETAP are
retrospective or prospective (if not practical) applied
prospectively (impact to retained earnings) and transfers from
and to SAK ETAP.
27) Effective date on the presentation of SAK ETAP, which is
effective for financial statements beginning on January 1, 2010,
early application January 1, 2010.
III Thinking Framework and Hypotheses
Thinking Framework
Implementation of SAK ETAP in SME in Tabanan Regency
 Entrepreneur
Education Implementation of
 Business Age SAK ETAP
 Number of Business
Loans
 Information
Researcher (2016)
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Hypothesis
The Influence of Education on the Implementation of SAK
ETAP
H1: Employer education has a positive effect on the
implementation of SAK ETAP
Effect of Business Duration on SAK ETAP Implementation
H2: Duration of business has a positive effect on the
implementation of IFRSs ETAP
Effect of Business Credit on the Implementation of SAK ETAP
H3: SME credit has a positive effect on the implementation of SAK
ETAP
The Influence of Entrepreneur Information Technology on the
Implications of SAK ETAP
H4: Understanding Information Technology has a positive effect on
the implementation of IFRS
Effect of Perceptions of Employers on Implications of SAK
ETAP
H5: Perceptions of SME entrepreneurs have a positive effect on the
implementation of SAK ETAP
IV Research Methods
Research Sites
This research was conducted on SME in Tabanan regency which
has a business license or registered with the Department of Industry
and Trade (DISPERINDAG) of Tabanan Regency.
Variable Operational Definition
1) Use of SAK ETAP in Presentation of Financial Statements (Y)
Measurements use dummy variables or dichotomous variables,
where the value is 1 for SMEs implementing SAK ETAP, and a
value of 0 for businesses that do not implement SAK ETAP.
2) Entrepreneur Education (X1)
Assessment uses a scale of numbers 1 to 4, where number 1 is
the lowest level scale and number 4 is the highest level scale,
which consists of:
Others(below SMA/SMK) =1
SMA/SMK =2
S1 =3
S2 =4
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3) Business Age (X2)

This variable is measured through the business life, namely the
length of the year the establishment of the business (Rudiantoro
and Siregar, 2011).
4) Total Business Credit (X3)
The assessment uses a number 1 to 5 scale, where number 1 is
the lowest level scale number and number 5 is the highest level
scale, which consists of:
Less than Rp 10.000.000 =1
Rp 10.000.001 – Rp 25.000.000 =2
Rp 25.000.001 – Rp 50.000.000 =3
Rp 50.000.001 – Rp 100.000.000 =4
More than Rp 100.000.000 =5
5) Perception of Information Technology (X4)
which consists of:
Very unimportant =1
Unimportant =2
Important =3
Very important =4
6) Entrepreneur Perception (X5)
which consists of:
Very unimportant =1
Unimportant =2
Important =3
Very important =4
Sample Determination Method
The determination of this research sample is based on purposive
sampling. The sample in this questionnaire was SME entrepreneurs
located in Tabanan district. This study was supported by the interview
process and then giving questionnaires to SME entrepreneurs to be
answered, and the results will be examined to find out how education,
business duration, business credit, and the perception of SME
entrepreneurs influence the implementation of SAK ETAP.
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Table 4
Research Sample Criteria
No Sample Criteria Sample Amount
1 Number of SME in Tabanan regency 8591
2 SMEs that do not have a business (6924)
license
Total 1667
Source:Primary Data (processed)
The method used to determine the number of samples is to use the

Slovin formula with an error tolerance level (10% tolerance) (Umar,
2008: 78 in Rahman, 2013). The number of samples needed in this
study is 94 business units spread in Tabanan Regency.
Data Analysis Technique
Hypothesis testing is done using logistic regression, because the
dependent variable is data that uses dummy variables or dichotomous
variables. The equation of the logistic regression model used is as
follows:
In (P/(1-P)) = + β1.X1 +
β2.X2+β3.X3+β4.X4+β5.X5+ .............(4.1)
Information: P : Implementation of SAK
ETAP
 : Konstanta
β₁-β₄ : Regression Coefficient
X₁ : Entrepreneur Education
X₂ : Business Age
X₃ : Business Credit
X₄ : Perception of Information
Technology
X5 : Entrepreneur Preception
: Error term
Vresults and Discussion
This research was conducted on SMEs that have been registered in
DISPERINDAG, Tabanan Regency. The results of data collection in the
study obtained from the results of questionnaires and interviews
conducted by researchers with respondents (SME entrepreneurs), to
get more accurate services and facilitate data analysis. The distribution
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of questionnaires using a sample of 94 respondents whose results,

namely the last formal education taken by respondents was dominated
by high school / vocational school graduates as many as 57 respondents,
S1 as many as 32 respondents, then under the SMA / SMK 5
respondents. Business duration is dominated by SMEs that have a
business life of more than 10 years. Credit received is generally in
accordance with the number of submissions made by SME
entrepreneurs.
Hypothesis testing
Determination Coefficient (Nagelkerke R Square)
The magnitude of the coefficient of determination in the logistic
regression model is indicated by the value of Nagelkerke R square.
Table 5.4 presents the values of the coefficient of determination
(Nagelkerke R Square), as follows:
Table 5.1
Nagelkerke R square Test Result
Source: Processed Data (2018)

Based on the test results shown in table 5.1, Nagelkerke R square value
is equal to 0.632 which means the variability of the dependent variable
that can be explained by the independent variable is 63.2 percent, while
the remaining 36.8 percent is explained by other variables outside the
model research.
Models of Formed Logistics Regression and Hypothesis Testing
Logistic regression model is formed to produce regression
coefficient and significance. The logistic regression model that is
formed can be seen in the parameter estimation value in variables in
the equation, as follows:
Table 5.2
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Hypothesis Test Results
Source: Processed Data (2018)

Table 5.2 presented above presents the parameter estimation
values in variables in the equation, so the logistic regression analysis
equation is obtained as follows:
In (P/(1-P)) = -19,474 + 1,860X1-
0,033X2+1,171X3+1,994X4+1,116X5
Discussion of Research Results

Influence of Level of Education on Implementation of SAK
ETAP
Based on the results of logistic regression test obtained a positive
coefficient value of 1.860 with a significance value of 0.033 smaller than
α (0.05). This means that the level of education is able to increase the
probability of SMEs to implement SAK ETAP and it can be concluded
that the first hypothesis is declared acceptable.
Entrepreneurs with a low level of formal education tend not to
have adequate preparation and use of accounting information compared
to entrepreneurs who have higher formal education. Employer
education is an important factor in the presentation of financial
statements, especially SAK ETAP, where accounting materials are the
basis for preparing financial statements. The higher the level of
education of SME entrepreneurs, the higher the implementation of
SAK ETAP in the business financial statements because entrepreneurs
are aware of the importance of the preparation of financial statements.
The results of this study are in accordance with Sariningtyas and Diah
(2013) and Malini (2015) who found that the level of education of
owners has a positive effect on the needs of SAK ETAP for SMEs.
Effect of Business Duration on SAK ETAP Implementation
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Based on the results of logistic regression test obtained a negative

coefficient value of -0.033 with a significance value of 0.404 which is
greater than α (0.05). This means that the length of effort does not
affect the probability of SMEs to implement SAK ETAP and it can be
concluded that the second hypothesis is declared rejected.
Not all SMEs are able to implement SAK ETAP even though they
have been running a business for a long time, generally business people
who have higher education or SMEs who receive training or coaching
from related institutions are better able to implement SAK ETAP,
while those who have not received training or guidance cannot yet
implement SAK ETAP. Business duration does not have an important
role in implementing SAK ETAP on business financial statements,
because the experience of SME owners may not be able to provide more
and better understanding of the making of financial statements. The
younger or the older the business age is not a reference that will make
the SME owner's view better related to the importance of accounting or
financial reporting based on SAK ETAP. Understanding of IFRSs
ETAP is more influenced by the willingness of SME owners to learn
and use them in the financial statements of the companies concerned.
This study in accordance with Mulyani (2014) found that business
duration did not prove to have a significant effect on the quality of
financial statements.
Effect of Total Business Credit on the Implementation of SAK
ETAP
coefficient value of 1.171 with a significance level of 0.033 which is
smaller than α (0.05). This shows that to get a loan in the form of
credit, the SME financial statements must be good, so the possibility of
SMEs implementing SAK ETAP will increase and it can be concluded
that the third hypothesis is accepted.
Business credit is a financial facility that allows a person / business
entity to borrow money for business purposes. Many government or
private financial institutions such as banks channel credit to SMEs
with certain conditions, one of the conditions is business financial
statements, which are used as analytical material in lending. The
financial statements based on SAK ETAP are easier to understand,
because the standard report is made specifically to facilitate SMEs in
presenting business financial statements. This research is in
accordance with the results of Malini's research (2015).
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Influence of Information Technology Perception on SAK ETAP

Implementation
smaller than α (0.05). This means that the more often SME owners get
an understanding of information technology, then the likelihood of
SMEs implementing SAK ETAP will increase and it can be concluded
that the fourth hypothesis is declared acceptable.
Information technology understanding is very important and
absolute which is expected to have a positive influence on the
presentation of SME financial statements, because understanding of
information technology provides a lot of knowledge and ease of
processing data into information in the presentation of financial
statements. Understanding of information technology has an influence
on the implementation of SAK ETAP in the presentation of business
financial statements. The results of this study are consistent with the
results of Sariningtyas and Diah (2013) and Nurmala (2015).
Influence of Entrepreneur Perception on SAK ETAP
Implementation
greater than α (0.05). This means that the perception of entrepreneurs
does not affect the probability of SMEs to implement SAK ETAP and it
can be concluded that the fifth hypothesis is declared rejected.
A person's perception of something arises because of some stimulus
that affects perception. SME entrepreneurs can have different
information in interpreting the value of accounting information.
Perception is not a major factor that can affect the mindset and views
of employers on understanding the financial statements based on SAK
ETAP. SME business owners argue that there are several obstacles in
implementing SAK ETAP-based financial statements, among others,
the problem of business busyness that makes the transaction
bookkeeping often forgotten and the lack of human resources in the
field of accounting. The majority of SMEs have carried out the
bookkeeping process, such as documenting transaction evidence such as
receipts, invoices, receipts and also carrying out simple transaction
bookkeeping processes, such as every sale and purchase of goods
recorded in a special note. The results of this study in accordance with
the results of research Sari (2014) and Kristanto (2011) found that the
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perception of SMEs did not affect the application of financial

accounting standards based on SAK ETAP.
VI Conclusion
Based on the results of data analysis, the results of the study
can be concluded as follows:
1) Education levels have a positive effect on the implementation of
SAK ETAP, entrepreneurs who have a higher level of education
are more likely to implement SAK ETAP.
2) Business duration or business age does not affect the
implementation of SAK ETAP in SMEs. Understanding of
IFRSs ETAP is more influenced by the willingness of SME
owners to learn and use them in the financial statements of the
companies concerned.
3) The number of business loans has a positive effect on the
implementation of SAK ETAP in SMEs. The implementation of
SAK ETAP in the financial statements can be a benchmark for
obtaining business credit from credit channeling institutions.
4) Perceptions of information technology have a positive effect on
the implementation of SAK ETAP. Understanding of
information technology provides a lot of knowledge and ease of
processing data into information in the presentation of financial
statements.
5) The perception of entrepreneurs does not affect the
implementation of SAK ETAP. SME business owners argue that
there are several obstacles in implementing SAK ETAP-based
financial statements, among others, the problem of business
busyness that makes the transaction bookkeeping often
forgotten and the lack of human resources capable of
accounting.
Daftar Pustaka
Anggara, Yupita, 2012. Pengaruh Persepsi SME tentang Standar

AkuntansiKeuangan Entitas Tanpa Akuntanbilitas Pubulik
(SAK ETAP) terhadap perilaku dalam penyajian laporan
keuangan pada peguyuban SME kota Malang. Skripsi.
Program Studi Ekonomi Universitas Negeri Malang.
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Auliyah, lim Ma’rifatul. 2012. Penerapan Akuntansi Berdasarkan SAK

ETAPpada UKM Kampung Batik di Sidoarjo. Skripsi. STIE
Perbanas Surabaya.
Daniel S, Stephanus. 2013. Modul Standar Akuntansi Keuangan-
Entitas TanpaAkuntanbilitas Publik (SAK-ETAP).
Ghozali, Imam. 2016. Aplikasi Multiv variabel dengan Program SPSS.
Semarang: BPFE Universitas Diponegoro
Haryadi. 2010. Akuntansi Pada Usaha Kecil Menengah. Yogyakarta:
GajahMadaUniversity Pres.
Ikatan Akuntan Indinesia. 2009. Standar Akuntansi Keuangan Entitas
TanpaAkuntanbilitas Publik. Per 1 Oktober. Jakarta: Dewan
Standar Akuntasi Keuangan.
Ikshan A dan Ishak M. 2005. Akuntansi Keprilakuan. Edisi ke empat.
Jakarta:Salemba Empat
Lutans, Fred,2006. Perilaku Organisasi. Yogyakarta: Andi
Malini. 2015. Pengaruh Pendidikan, Lama Usaha, Kredit dan Persepsi
Pengusaha SME terhadap Implementasi SAK ETAP di
Kabupaten Gianyar. Skripsi. Program Studi Akuntansi
Universitas Mahasaraswati Denpasar.
Pemerintah Republik Indonesia. 2000. Undang-undang No 20 tentang
UsahaMikro Kecil Menengah. Surabaya: Serbajaya
Robbins, Stephen P. 2005. Organizational Behavior Prentice-hall
International I.
Rudiantoro, Rizki., dan Sylvia Veronica Siregar. 2011. Kualitas
LaporanKeuangan SME serta Prospek Implementasi SAK
ETAP. Simposium Nasional Akuntansi XIV. Aceh. 21-22 Juli
2011
Sariningtyas, Pratiwi dan Tutik DiahW. 2103. Standar Akuntansi
KeuanganEntitas Tanpa Akuntanbilitas Publik pada Usaha
Kecil dan Menengah. JAKI Vol. 1 No.1 Hal.90-101. UPN
Veteran Jawa Timur.
Sofiah, Nurhayati, dan Aniek Murniati. 2014. Persepsi Pengusaha
SMEKeramik Dinoyo atas Informasi Akuntansi Keuangan
Berbasis Entitas Tanpa Akuntanbilitas Publik (SAK ETAP).
Jurnal JIBEKA Vol 8 No 1. STIE ASIA Malang. Februari
2014.
Subrata, I Nyoman, I Nyoman Subawa, I Ketut Sukanata dan Ni
Wayan YuliAstini. 2004. Akuntansi Berbasis Kompetensi. Edisi
pertama. Denpasar: Pustaka Tarukan Agung.
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Sugiarto. 2006. Pengantar Akuntansi. Jakarta: Pusat Penerbitan

UniversitasTerbuka.
Sugiyono. 2016. Metode Penelitian Kuantitatif Kualitatifdan R&D.
Cetakan ke12. Bandung: CV Alfabeta.
Tarmizi, Rosmiaty dan Ni Luh Sartika Bugawati. 2013. Pengaruh
PersepsiPengusaha Kecil dan Menengah terhadap
Penggunaan SAK ETAP di Kota Bandar Lampung. Skripsi.
Universitas Bandar Lampung.
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ROTAVETORGEAR BOX COVER PLATE DIMENSIONAL

ERROR ANALYSIS USING CMM MACHINE
Sumit N. Karanjekar
Assistant Professor
Department of Mechanical Engineering
G.H. Raisoni Academy of Engineering& Technology
Nagpur, India
Abstract
This paper explains the dimensional error analysis of gear box
side cover plate used in Rotavetor in Jadhao Icons industry, situated to
nearby Amravati MIDC. This project work states how the errors taken
place and how it is analysed by using coordinate Measuring Machine
(CMM).In this work the CAD model is prepared using CATIA software.
And the error analysis is conducted using graphical representation and
further preventive action carried out by suggesting proper
manufacturing process.
This work explains the procedure of correct dimensions taken from the
failure parts which has many issues such as tolerance, limits, fits,
allowances and deviations. Also this project work states the methods of
correct dimensioning of parts over the conventional method. In this
work the coordinate machine is utilized for measuring the gear box
plate also the scanning takes place for the generation of correct profile
and other dimensions to prepare a CAD model using CATIA software.
The error analysis is conducted using the conventional methods,
manual CMM method and CMM scanning readings. Also the new
method is introduced for the above in the area of quality inspection
program was developed. This dimensioning method proves and solves
the issues related to the quality inspection. These error analyses helps
to the Industry and solve the number of problem associated with the
dimensioning of gear box plate and the other part that directly and
indirectly connected to the gear box mechanism. The numbers of
observation have been taken for the dimensional error analysis which
will also introduce in the new parts. This work proves the necessity of
dimensional analysis in the area of quality inspections.
Key words: gear box side cover platematerial, dimensional error cause,
CAD design, error analysis
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1. Introduction
As the Manufacturing companies are increasingly embracing
computer integrated manufacturing (CIM), the need for Computer-
Aided-Measurement increased as well. The evolution of the Co-
ordinate Measuring Machine (CMM) was a big breakthrough in
dimensional metrology as the need for more accurate measuring
devices increased.CMM usage in various industries within last decades
became very popular for quality inspections. Measuring machines can
be use in direct determination of correction values of dimensions and
the metrological aspects.
The ultimate purpose of the dimensional error analysis is
entirely positive in order to prevent further dimensional errors occurs
when some system fails to perform the work up to the expectations for
which it was created or developed. Gear box side cover plate is
component part of Rotavetor used with tractor and it is the product on
which the entire dimensional error analysis is carried out.[1].
This type oferrors occurs as because of the use of wrong method
of manufacturing, wrong machining operations and wrong method of
measurement.
A. Material specification and manufacturing:
Gear box side cover plate is made of material i.eCast Steel Grit (G25)
be so called Steel Shot Steel Abrasives, it is sharp angle sand casts
iron, the sand and iron filings to get stripe to act for a product, also
being called to throwing pill to whet to anticipate in manufacturing.
Origin of Steel Grit / Cast-steel, grit, is produced by mechanical
crushing of steel shot particles of different size to sharp-edged
particles with precisely defined particle size. Weight is Min. 7 g/cm³
(apparent density), measured by displacement using methanol.
Chemical composition analysis consist of elements as
Carbon C:0,85 to 1,20 %
Manganese Mn:0,60 to 1,20 %
SiliconSi :min. 0,40 %
SulfurS :max. 0,05 %
Phosphorus P:max. 0,05 %
Steel Grit/Cast-steel, grit, is applicable in compressed- air plants,
among other things for descaling, derusting, deburring and roughening
of surfaces prior to subsequent coating/painting.
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coordinates with respect to production drawing, and from this sketch

the 3D object/model is produced. So this is the model through which
the entire dimensional error analysis is begins to carried out. The
drafting of this model is then compared with drafting of actual
production drawing based CATIA model and it will reflects the errors
which is to be study and shown in the following tables and graphs.
TableI:Error analysis between manual measurements and
scanning measurement.
Scanning Manual
S Part Error
Measurement Measurement
N name (mm)
(mm) (mm)
Small
1 30.39 31.00 -0.61
circle 1
Small
2 24.39 25.00 -0.61
circle 2
3 LH Circle 10.78 11.00 -0.22
4 RH Circle 10.73 11.00 -0.27
Middle
5 10.78 11.00 -0.22
Circle
6 Length 241.36 239.00 2.36
7 Width 261.89 265.00 -3.11
8 Thickness 165.43 164.00 1.43
Center
9 21.07 21.00 0.07
Distance
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Table II: Error analysis of CMM manual measurement and

scanning measurement.
Scanning CMM Manual
S Error
Part Measurement Measurement
N (mm)
name (mm) (mm)
Small
1 30.39 31.103 -0.713
circle 1
Small
2 24.39 25.106 -0.716
circle 2
3 LH circle 10.78 11.124 -0.344
4 RH circle 10.73 11.131 -0.401
Middle
5 10.78 11.057 -0.277
circle
6 Length 241.36 239.07 2.29
7 Width 261.36 265.08 -3.19
8 Thickness 165.43 164.47 0.96
Center
9 21.07 21.31 -0.247
distance
Table 2: Error analysis of CMM manual measurement and

scanning measurement
C. Graphical Observations and Comparative Statement :
Graph I:The graph shows error analysis between the manual

measurement and scanning measurements
Graph 1.The graph shows error analysis between the manual

measurement and scanning measurements
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The graph of manual measurement by conventional measuring

instruments v/s CMM scanning measurement by touching probe of
CMM machine to workpiece and obtaining coordinate data in computer
software, so resultant from both graphs shows simultaneous behaviour
and resulting error occur in microns.
Graph II: The graph showing error analysis between CMM

manual measurements and scanning measurements
Graph 2. The graph showing error analysis between CMM
manual measurements and scanning measurements
These graphs show the comparison in dimensions among the CMM
manual, Conventional and CMM scanning measurement. The result
obtain from the above method that the CMM scanning measurement
technique is very accurate type of measurement technique when we
compared with the other conventional methods. The error analysis
shows the deviation in various dimensions which are closed related
with the conventional dimension but the problem when it assembles to
other parts.
The deviation in dimensions through scanning
measurement, CMM manual and manual measurement is in microns.
The various machining parts of gear box cover plate have some errors
in dimensions measured by conventional and manual method. The
deviation in dimensions of various part of gear covers plate as shown in
above tables.
The graph of manual measurement v/s scanning measurement,
both graphs shows simultaneous behavior and resulting error occur in
microns.
2. Result and Discussion
Dimensional inspection planning and other systems must solve
complex geometric problems. CMM machine is working on reverse
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engineering concept. It is basically used to solve the complexity

problems. It is invented for knowing the profiles of complex
components and then constructs the individual surfaces by blending
the different sets of feature curves.
Similarly, reverse engineering will not only capture raw data
from the existing object to generate a single copy, but the original
design intent will be interpreted and some CAD model will be created
accordingly. Additionally, in the field of reverse engineering, the
major problem is that the original measured points with irregular
format, and unequal distribution, and lack of appropriate
segmentation are difficult to fit into a curve in CAD systems. For
example, in order to the whole surface needs to be reconstructed,
there are situations where only parts of a certain surface can be
measured using modern tool.
Therefore, the modern standard technology of restoring
and segmenting data points is greatly useful and needed to construct
the model of an existing object even though it is having known
dimension or not, the design intentcorresponding and, which can be
applied in various purposes and applications. Due to this the purpose
work is to describe andrequired approach to process the data points
obtained by scanning tool for feature-curve fitting in reverse
engineering technique. The approach which is to be proposed not only
concerned with rebuilding geometry of component, but knowledge, i.e.
design features and parameters of the shape are obtained,
corresponding to the intent of the expert designer. The main ideal role
here is to divide the measured points obtained by skilled technique of
measurement and scanning into various sets, based on the design
intent, with the interaction of designer for the individual feature
curves behind a given shape. Then, the original surface elements may
be created, by blending the different feature curves, to reconstruct the
CAD model of the given shape using suitable modelling software. By
applying the proposed approach of processing data points, the
measured data has been segmented and regenerated. The format of
the regenerated point sets meets the requirements fitting into a B-
spline curve with “good shape” and “high quality”
The CMM scanning Technique is most effective technique over
the other technique discuss. This work only state the method of
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accurate dimensioning from those parts where there is complexity of

dimensioning.
In future CMM scanning technique also applicable for other
parts in the industry as the same problem occurs.The methodology
explains it is to be automated and the complete method to extract the
dimension from the part which will be develop through reverse
engineering method.
In future we dreamed towards the parts which is directly produce
by scanning, means there is no medium to covert by any medium, It is
totally automated.
REFERENCES
[1] Menq C. H., Yau, H. T. and Wong, C. L. “An intelligent planning
environment for automated dimensional inspection using
coordinate measuring machines. Trans.”ASME, J. Engng for
Industry, May 1992, 114(2), 222±230.
[2] P. J. Besl and N. D. McKay, “A Method for Registration of 3D
Shapes”, IEEE Transactions on Pattern Analysis and Machine
Intelligence, Vol. 14, No. 2, pp.239–256, 1992.
[3] C. Butler, “Investigation Into the Performance of Probes on
Coordinate Measuring Machines”, Industrial Metrology, Vol. 2,
No. 1, pp 59-70, 1991.
[4] Pahk, H. J., Jung, M. Y., Hwang, S. W., Kim, Y. H., Hong, Y. S.
and Kim, S. G. Integrated precision inspection system for
manufacturing of moulds having CAD de®ned features. Int. J.
Adv. Mfg Technol., 1995, 10(3), 98±207.
[5] Faux, I. D. and Pratt, M. J. Computational Geometry for Design
and Manufacture, 1979, p. 268 (Ellis Horwood, Chichester).
[6] Song, C. K. and Kim, S. W. Reverse engineering: autono- mous
digitization of free-formed surfaces on a CNC coordinate
measuring machine. Int. J. Mach. Tools Mf., 1997, 37(7),
1041±1051.
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THE ROLES OF ENTREPRENEURIAL MARKETING IN

PENETRATING THE EXPORT MARKET OF BALINESE
HANDICRAFTS
Ni Luh Putu Agustini Karta1, Ida Ketut Kusumawijaya2,
I Nengah Dasi Astawa3, I Gst Agung Sinta Diarini4
Bali, Indonesia
agustinikputu@gmail.com
Penetrating international markets with high price standards is a

challenge for Balinese export SMEs. A special strategy is needed to
penetrate the international market. The purpose of this study is to
analyze the role of entrepreneurial marketing in the implementation of
the export trade of Balinese handicraft products in Indonesia.
Respondents in this study were 25 SME businessmen in Badung,
Gianyar, Tabanan and Denpasar, who engaged in Balinese handicraft
businesses with international markets. Descriptive qualitative analysis
with SWOT technique analysis was conducted to explore the role of
entrepreneurial marketing, challenges and obstacles in the competition
of export products of Balinese handicrafts. The finding of this research
is that entrepreneurial marketing has a positive role in the competition
to penetrate export market. Innovation, risk management capabilities,
resource competencies, international relationships and understanding
of export documents make it possible for export SMEs to penetrate
international markets.
Key words: entrepreneurial, marketing, innovation, export
Introduction
Tourism is a leading industry in Bali that is relied by the Indonesian
government in achieving the country's foreign exchange targets. The
carrying capacity of society, environment and infrastructure is needed
to increase the tourists visiting Bali. Various hotels, restaurants and
art shops are built as tourism support facilities. These units are in the
form of companies, some are SMEs. Every traveler tends to shop
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looking for the local area souvenirs. The development of tourism in Bali
is growing rapidly. It also followed by the rapid development of art
shop, gift shop, souvenir shop, cargo, packaging and shipping. The high
demand of souvenirs, impacts souvenir shops in Bali. The existence of
art shop gallery is sometimes combined with a restaurant or art gallery
cafe concept. This increases the demands of Balinese souvenir products
for foreign countries.Souvenirs sold in Bali are generally wood-based or
similar. Foreign tourists like souvenirs and furniture such as wood
carvings, wood furniture, or products from wasted wood on the beach,
often called drift wood. The utilization of drift wood and logged logs as
the basic material of handicraft that is valuable art and expensive,
strongly supports government efforts in realizing eco-environment, eco-
tourism souvenirs, go-green, go-clean for the beach and other
awareness programs in favor of environmental conservation.
Community participation in maintaining coastal hygiene indirectly
materialized due to the encouragement of collecting raw materials from
drift wood. Similarly, wood-based products, which directly utilize the
remaining logging, would make the forest clean again and ready for
reforestation. Growing the SME export craft will absorb the workforce
of the local community.
This paper is more focused on the challenges, obstacles and the
roles of entrepreneurial marketing for Balinese crafts export SMEs.
The combined concept of entrepreneur and marketing is expected to
solve the challenges that Balinese export SEMs are facing.
According to the Balinese Central Bureau of Statistics (2017),
Balinese export commodities are very diverse. Products that are made
from wood ranked fourth after Garments, jewelries and on the top,
fishes and shrimps. Because of the people’s skill and talent on wood
carving, exporting products from wood has a big factor for the people’s
income. The Table 1 below shows the Balinese export commodities of
2017.
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Table 1. Exports of Bali Province by Major Commodity, 2017
Export
Volume Value
Commodity Group Segment
(kg) (US$)
(%)
Fish and Shrimps (03) 23 831 131 794
1. 24.56
675 879
Jewelries (71) 75 609
2. 681 923 14.09
464
Garments (62) 69 396
3. 3 520 474 12.93
849
Wood, Wood Crafts (44) 13 200 48 210
4. 8.99
372 299
Furniture, House 12 319 39 278
5. 7.32
Lighting (94) 278 961
Knitworks(61) 16 806
6. 595 060 3.13
877
Coffee Beans, Tea, 11 844
7. 474 912 2.21
Spices (09) 434
Leather Crafts (42) 11 358
8. 493 954 2.12
755
Processed Meat and
9. 2 667 883 9 985 070 1.86
Fish (16)
1 Crafts from Stone, 12 164
9 705 456 1.81
0. Gypsum (68) 929
Source: Bali Statistic (2018)
In this era, an ideal marketing strategy will determine a company’s
success. From our interviews with the owners or managers of several
export SEMs, most stated that to penetrate the international market,
Export SEMs have to use certain strategies. Other challenges that
prevent export SEMs to penetrate the international market are
bureaucracy on filing documents, market competition, product
standards, and patent rights.
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Theoritical Review
BPS Bali Statistical Data (2017) describes the number of Balinese
exports of $536,547,921, with a trade balance of $412,116,860. At 2017,
it grew 8.9%. Bagawinata (2018),stated "The Bali Provincial Industry
and Trade Office recorded foreign exchange of USD220.60 million from
the export of handicrafts on a household scale in 2017. The increase
was USD19.84 million compared to the previous year which was
USD200.76 million. Efforts to ship the handicrafts were able to
contribute 32.46 percent of Bali's total export value of USD679.59
million.
Home industry-based craft business is growing rapidly in tourism
centers in Gianyar and Badung. "The handicrafts that highlight the art
elements that break through the foreign market consist of 17 types of
commodities which are generally very favored by consumers from
various countries around the world are wood-based souvenirs.
Bagawinata (2018).
UNESCO’s Methodological Guide to the Collection of Data on Crafts,
published in 1997, divides artisanal products under broad categories
based on the materials used. The six main categories of this
classification are: Baskets/wickers/vegetable fibre-works; Leather;
Metal; Pottery; Textiles and Wood. The guide also identifies
complementary categories comprising materials in craft production
that are either very specific to a given area, or rare, or difficult to work,
such as: stone, glass, ivory, bone, shell, mother-of-pearl, etc. Extra
categories are also identified when different materials and techniques
are applied at the same time and refer to decorations, jewellery, musical
instruments, toys, works of art, etc.
The uniqueness of Balinese handicrafts requires a special strategy in its
marketing. In the era of digitalization, the combination of marketing
capabilities and entrepreneurial spirit play an important role.Internal
and external factor should be consider in facing the tight competition in
international market. The relationship between the company to the
external will decided how the SME will winning the competitor.
Nicolescu (2009) in his research found that there are internal and
external variables that affect the performance of SMEs. Internal
variables consist of the size of the company, stakeholder personality,
and educational background (owner and worker), as well as corporate
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culture. Meanwhile, external factors that affect performance include

national culture, a country's economic system, regional economic
integration, and people's purchasing power.
Furthermore, Nicolescu (2009) states that internal factors influence
performance rather than external factors by considering the economic
scale of these SMEs. This also makes the company able to survive.
Figure 1 describes the influence of entrepreneurial activities.
Figure 1. The main variables that have influence on the

entrepreneurial activities
Another variable that should be consider in managing SMEs is Human
Resources Management (HRM) aspect. Marlow (2006) state that HRM
deals with the attraction, selection, training, assessment, and
rewarding of employees. Other research likesSidabutar (2014) found
that another advantage of SMEs in Indonesia lies in their production,
because most of them do not use raw materials from outside / import so
that they are not affected by the increase in the price of imported raw
materials, and still be able to maintain their business continuity.
However, there is a decrease in the total value on non-oil and gas
exports by SMEs in 2011 to 2012, because SMEs have weaknesses in
productive resources, product adaptation, production capacity,
knowledge of documents and export costs.
According to Kraus, Harms & Fink (2009), marketing in new and small
ventures faces several challenges that can be overcome by the
entrepreneurial approach to marketing. Marketing and
entrepreneurship have been traditionally considered as two different
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fields of study. Entrepreneurial Marketing as an organizational

function of marketing by taking into account innovation, risk taking,
proactiveness and the pursuit of opportunities without regard to
resources currently controlled. This definition must be restricted to
young and small ventures, but can be be applied to larger firms. We
illustrate the concept of Entrepreneurial Marketing by highlighting
Guerrilla Marketing, Buzz Marketing and Viral Marketing, Kraus, et
al. (2009).The awareness of the importance of entrepreneurship and
innovation for marketing, and entrepreneurial success, led to the
efforts to combine two disciplines as entrepreneurial marketing. The
main thrust of entrepreneurial marketing is the emphasis on
marketing to adapt forms that are suitable for small and medium
enterprises (SMEs), recognizing the possible important role of
entrepreneurs in every marketing activity (Stokes, 2000: 47).Martin
(2009) findings; Entrepreneurs with Corporate Traditional marketing
(CTM) was expertise privilege elements of Entrepreneurial Marketing.
Rather than relying on the traditional four Ps (product, price, place,
and promotion), their marketing strategy and practice is reminiscent of
the entrepreneurial four P’s (purpose, practices, process, and people).
Communication competency is foundational to successful EM.
Methodology
To find out more about the implementation of the concepts of
entrepreneurial marketing and barriers and challenges in the
competition of SME exports, a survey was conducted on 25 Bali
handicraft SME players located in Badung, Tabanan, Denpasar, and
Gianyar Regencies. Data and information on SMEs are collected
through interviews and questionnaires. The data was analyzed by
descriptive qualitative, then tabulated in graphical form for the cell to
be reviewed using the SWOT analysis approach. Clarification of the
government, which in this case is the Office of Industry, Cooperatives
and SMEs is carried out to synchronize the government program with
the efforts to promote the UKM of Bali Exports.
Discussion
The tourism of Bali makes this island the world's spotlight. Various
businesses emerged and developed rapidly as supporters of tourism
activities. Hotels, restaurants, art shop galleries, tour and travel
packages, tourist attractions, cultural performance, culinary and
shopping centers of international class. Other supporting businesses
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include packing and shipping cargo, property, cars and motorbike

rental. This business development certainly strengthens each other and
makes Bali an island that has a complete tourism service. Every tourist
destination has an artshop that sells various art and garment crafts
made by the local community. All Balinese people focus on providing
tourism supporting facilities. They join Tourism SMEs, build
restaurants, build properties for rent, and provide vehicle rental
services and consultants.The existence of SMEs in Bali is not only for
domestic production, but also for export capacity. Demand for art crafts
for export to foreign countries requires special handling. Various
products of wooden handicrafts, fabrics, silver and Balinese
architectural model houses are exported to various countries according
to tourist demand.The intense activity of export of Balinese
handicraftsmade this business a promising SME, but its
implementation has found several obstacles
Various efforts have been made by the government in order to help
increase this handicraft export commodity. The Office of Industry,
Cooperatives and SMEs foster SMEs continuously in the container of
the Export SME Development Group. Granting permission to open
property in Bali, are required to use SME products for furniture, design
and decoration. The government through related agencies also
organizes cooperation with other government company such as PT Post
Export, the Customs and Immigration Division, and the Ministry of
Law and Human Rights to help the export process become faster and
safer. Based on the results of data collection from 25 SMEs in Bali, data
was obtained about the problems faced by SMEs in Bali, as listed in
Table 2 below:
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Table 2. Summary of Problems Faced by UKM of Bali Exports
THE PROBLEMS FACED BY BALI`S SMEs

100
80
Prosen (%)
60
40
20
0
Source: Data collecting 2018

Based on these data; It can be seen that the main problems faced by
SMEs are 85%bureaucratic problems, 58%product quality problems,
55%human resources problem, 50%material problem, and 40% to
document constraints, packing and shipping and competitors.If we look
at various export cases that occur, both from newspaper, TV news, and
the search results of SMEs, it appears that the difference of viewpoints
between the government and business actors makes this obstacle drag
on so as to limit export opportunities and capacity.
Interview with Sutapa, May 2018 (owner of Parisuda Wood Carving):
outlines "I face obstacles in exporting myself. Processing documents is
very difficult. Various types of permits are needed so that the wood
products I bought legally can be sold legally to foreign countries.
Because I don't have the permission in question, and only packaging
and shipping agents have, we have to sell our products cheaply to the
agent / cargo."
Interview with NgurahWindia, May 2018 (the owner of Ari Deco Drift
Wood) also said: "I hope to meet buyers directly, because only direct
buyers want to buy my products at reasonable prices by arranging
documents by them. Document bureaucracy is quite difficult. If we did
it through agent / cargo, my item is bought at a low price. So if I meet a
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direct buyer, I will be happy to receive the order. If I go through agent /

cargo, I reject it a lot, because it's not profitable.
Referring to the problems in the field, and the results of the data
collected, the main obstacle faced is the lack of understanding of SMEs
in managing export documents. According to them a long and very
complicated bureaucracy is very time and energy consuming. Picture of
results that are not yet clear about their efforts and the nominal spent,
makes them prefer shortcuts, namely through agents / cargo. Many of
them also gave documents to direct buyers at relatively cheap prices.
Understanding of human resources on the process and procedures for
managing documents also needs to be improved.
When linked to the implementation of entrepreneurial marketing
concepts, as stated by Nicolescu (2009) that in SME management,
internal factors in SMEs influence performance rather than the
external factors of SMEs, taking into account the economic scale of
SMEs. Internal factors include organizational structure, knowledge of
entrepreneurship, personality and motivation and culture of the people
involved in the organization. External factors include the features and
functions of the economic system, the definition of regional economies
of scale with local culture and the size and analysis of market
demand.In the implementation of marketing of Indonesian export
products, it is clear that Indonesia's potential and commodities are
quite numerous and good, but the limited understanding of SMEs is
very dominant in influencing decision making. In this case, the best
solution is to implement entrepreneurial marketing. The approach to
these two aspects will simultaneously help SMEs to be more innovative,
take risks, proactively capture opportunities, and focus on guerrilla,
buzz and viral marketing Kraus, Harms & Fink (2009). Referring to the
findings, SMEs in Bali should start implementing both strategies in an
effort to penetrate the export market. Internal and external factors in
the following entrepreneurial marketing are discussed in the study of
SWOT analysis (Strength, Weakness, Opportunity, and Threat) with
the following strategies:
Internal factors include the strengths and weaknesses of
Balinese SMEs including:
Strength Factors:
1. The export commodities of Balinese handicrafts are very diverse.
2. Balinese crafts have high value.
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3. The basic ingredients of the Bali craft industry are local materials
that are easily available.
4. Able to be produced by local people who have artistic competence
5. Its uniqueness, favored by foreign consumers
Weakness Factors:
1. An understanding of the export market is very low
2. Less innovation.
3. Lack of perseverance to fight through barriers to the export market
4. Too dependent on the government
5. Less able to manage risk
External factors include opportunities and threats:
Opportunity Factor:
1. The demand for Balinese handy craft is quite high
2. Quality and types of products are recognized to be very attractive
3. HRare ready to produce enough so that they are able to serve large
quantities of demand.
4. AFTA, MEA and cooperation between countries facilitate export
transactions.
5. The one-stop trading system (INATRADE) facilitates SMEs
Threat Factor:
1. The strength of competing countries in terms of patents, making Bali
products easily replicated and patented by outsiders.
2. Limitations in providing document processing support facilities make
export activities run slowly.
3. Price competition between SMEs and unfair agent / cargo behavior.
4. There is no special bureau that helps speed up export procedures.
5. Government assistance is not fast enough, making SMEs trapped in
legal cases.
In determining the strategy, internal and external factors must be
combined so as to produce realistic strategies and be able to answer the
problems of SMEs. The combination of internal and external factors is
described as follows.
Strength - Opportunities (SO) Strategy
1. Increase diversity to meet market demands.
2. Crafts of high artistic,value, need to maintain quality.
3. Balinese handicraft products favored by foreign consumers, it will be
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easy to go global through AFTA & MEA.

4. Take advantage of INATRADE services to speed up service.
5. Local and human resources are available to support increased
production
Strength Threat (ST) Strategy
1. Increase the value of the product, patented so that it is difficult to
imitate.
2. Crafts of high artistic value, do differentiation and avoid unnatural
competition.
3. Products favored by foreign consumers, find a fast way to export.
4. Approach with the government to accelerate service.
5. Synergy between SMEs in the use of local and human resources is
available.
Strategy: Weakness Opportunity (WO)
1. Increase the understanding of the export market to meet export
demand.
2. Improve innovation so that products are more diverse and quality.
3. Increase efforts to penetrate the export market barriers to compete
in AFTA and MEA.
4. Use the INATRADE service
5. Improve understanding of managing risks for all human resources,
so that they are competent.
Strategy: Weakness Threat (WT)
1. Improve understanding of the export market so that it can compete
in a healthy manner.
2. Improve innovation so that the product is not easily replicated.
3. Increase efforts to penetrate export market barriers by expanding
international relationships.
4. More agile in trying to penetrate the market more simply.
5. Improve understanding of export documents, so that they are not
constrained by bureaucracy.
Table 3.These Strategies in IFAS (Internal Factor Analysis Summary)

and EFAS (External Factor Analysis Summary) outline the right
strategy in solving the problems of the Bali Export UKM.
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Table 3. IFAS AND EFAS ANALYSIS OF BALINESE

HANDICRAFT
Opportunities Threat Factor: (T)

Factor: (O) 1. The strength of a
1. Product demand is competing country in
quite high terms of patents, so
2. Quality, attractive that Balinese
type of product products are easily
3. Human resources replicated.
are abundant so they 2. Limitations on the
can produce large provision of
quantities supporting facilities
4. AFTA, MEA and for document
cooperation between processes slowing
countries facilitate down export
export transactions. activities.
5. The one-stop 3. Price competition
trading system between SMEs
(INATRADE) &agents that are not
facilitates SMEs. fair.
4. There is no special
agency speeds up the
export process.
5. Government
assistance is not fast
enough, making
SMEs trapped in legal
cases.
Strength Factor: (S) SO strategy: ST Strategy:
1. The Balinese export 1. Increase diversity 1. Increase the value
commodities to meet market of the product,
handicrafts are very demands. patented so that it is
diverse. 2. Crafts of high difficult to imitate.
2. Balinese crafts have artistic value, need to 2. Crafts of high
high value. maintain quality. artistic value, make
3. The basic 3. Products favored differentiation and
ingredients of the Bali by foreign consumers, avoid unnatural
craft industry are local easily go global competition.
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materials that are through AFTA & 3. Products favored

easily available. MEA. by foreign consumers,
4. Able to be produced 4. Take advantage of find a fast way to
by local people who INATRADE services export.
have artistic to speed up service. 4. Approach with the
competence 5. Local and human government to
5. Its uniqueness, resources are accelerate service.
favored by foreign available to support 5. Synergy between
consumers increased production SMEs in the use of
local and human
resources is available.
Weakness Factor: WO Strategy: WT Strategy:
(W) 1. Increase 1. Improve
1. An understanding of understanding of the understanding of the
the export market is export market to export market so
very low meet export demand. that it can compete
2. Less innovation. 2. Improve innovation in a healthy manner.
3. Lack of so that products are 2. Improve
perseverance to fight more diverse and innovation so that
through barriers to the quality. the product is not
export market 3. Increase efforts to easily replicated.
4. Too dependent on penetrate the export 3. Increase efforts to
the government market barriers to penetrate export
5. Less able to manage compete in AFTA and market barriers by
risk MEA. expanding
4. Use the international
INATRADE service relationships.
5. Improve 4. More agile in
understanding of penetrating the
managing risks for all market more simply.
human resources, so 1. Improve
that they are understanding of
competent. export documents, so
that they are not
constrained by
bureaucracy.
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Conclusion
Based on the SWOT analysis in table 3; IFAS and EFAS, the
following are concluded:
1. Implementation of entrepreneurial marketing is absolutely
necessary in managing export SMEs because this builds
innovation, risk taking, and improves the quality of human
resources. Thus the value of the product remains standard and
has high value.
2. Bureaucratic constraints and limited human resource
competencies in preparing documents can be overcome by
strengthening socialization, entrepreneurial spirit and
individual in SMEs and trying to open relationships with foreign
buyers directly.
3. The availability of raw materials and the quality of goods must
be maintained in order to maintain the existence of export
products that remain sustainable.
4. Product diversity and product quality must be maintained so
that export activities are sustainable.
Bibliography
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www.ijmer.in 189
THE ROLE OF LOCAL CULINARY ENTREPRENEURS

IN TOURISM DEVELOPMENT IN BALI
Ni Komang Nariani
Lecturer of SPB Airline Training Centerat STPBI
Jl. Tari Kecak No. 12, Denpasar, Bali, Indonesia
Corresponding Author: nk_nariani@yahoo.com
Abstract
Culinary entrepreneurs have an important role in the
development of tourism in Bali, especially through the culinary world.
Their role has not been given much attention when compared to
entrepreneurs in the field of property and mining. In the world of
tourism in particular, there are many successful entrepreneurs in the
field of culinary. This study examines the role of culinary
entrepreneurs to support Bali tourism. The research was conducted in
Ubud with the research subjects of successful culinary entrepreneurs in
Bali using descriptive qualitative methods. Research problems of the
research are: 1) how is the development of local culinary business in
Bali? and, 2) what is the role of local culinary entrepreneurs in
improving Bali tourism? The research found out that culinary
entrepreneurs have a role in the development of cultural tourism
through three things: popularizing, preserving and strengthening the
identity of local culinary. As entrepreneurs they show a role to the
worldin the context of Bali tourism development.
Keywords: role, entrepreneur, Bali culinary.
I. Introduction
The tourism industry is one of the fastest growing services
sectors and the third largest source of foreign exchange in the world
after the oil and chemical products industry which has surpassed the
automotive and food products industries (UNWTO, 2016). The growth
of tourism goes along with the increasing competition among tourist
destinations. The spreading of global tourism in various countries has
resulted in various economic and employment benefits to related
sectors such as construction, agriculture and telecommunications.
Indonesia as an archipelago has a variety of tribes and cultures as well
as enormous natural potential as the source of tourist
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attractions.Tourism that uses cultural resources as a major capital in

tourism attractions is known as cultural tourism. Understanding
cultural tourism according to Geriya (1995: 103) is one type of tourism
that relies on cultural potential as the most dominant attraction as well
as providing identity for the development of tourism. This type of
tourism provides a wider variety of attractions related to culture such
as performing arts, architectural arts, crafts, historical experiences,
including traditional or culinary foods (Aryanti, 2014).
Indonesia as one of the multicultural countries has great
potential to develop culinary tourism. Each region in Indonesia has its
own traditional cuisine and culture that can be used as a culinary
attraction. However to attract foreign tourists, it is necessary to
promoteappropriate and sustainable strategy of culinary tourism. The
government has made several culinary promotional efforts in
Indonesia. In 2012, the Ministry of Tourism and Creative Economy led
by Mari ElkaPangestu set 30 traditional Indonesian cuisinesas a
culinary icon (Kompas.com, 2012). It can be used as a recommendation
to attract tourists to taste the menu. Not only limited to the
introduction of the menu, but the government has realized the
importance of the role of one component in the culinary tour that is the
restaurant where the culinary is being served to tourists. In 2008, the
Indonesian Government through the Embassy of the Republic of
Indonesia in Washington, USA, formed a Restaurant Task Force to
help promote Indonesian restaurants and raise awareness that
Indonesia is a culinary rich nation (Rockower, 2010).
Bali is a popular tourist area around the world. Bali is rich with
a variety of traditional foods, it can be seen from the availability of
various types of traditional food can be found in various districts in
Bali, such as suckling pork (Babi Guling), Serombotan,Betutu, Blayag,
and others (Margi, et al: 2012). This study examines the contribution of
local culinary entrepreneurs Bali in tourism development in Bali. Ubud
is a tourist area in Gianyar regency. As the third largest regency in Bali
after Badung and Denpasar, accommodation and feeding business
contributed the largest revenue in Gianyar with 24.4% (BPS Gianyar,
2016). The development of Ubud as a tourist destination followed by
the growth of tourism facilities such as accommodation, restaurants,
and tourist attraction.
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Based on Directory 2016 published by the Bali Provincial

Tourism Office, the number of restaurants recorded in Gianyar
Regency reaches 504 restaurants. The growth of food stalls and
restaurants is an indication of the fulfillment of the basic needs of
tourists while visiting Ubud. Cultural elements in Ubud open
opportunities for the development of culinary tourism that supports
cultural tourism. Culinary which was never previously correlated with
Ubud, currently becomes one of the preferences of tourists to visit
Ubud. The presence of culinary tourism to rejuvenate the attraction of
Ubud as stated in the theory of tourism area life cycle of Butler (1980).
Based on research conducted by Pitanatri (2015), that as many as 48%
of local tourists deliberately visited Ubud to enjoy local cuisine, of
which 62% are repeat visits.
Currently Ubud and culinary have become an integral part in
the development of cultural tourism. The selection of Ubud as the
location in this study because the writer believes the local culinary has
a great opportunity to become the main tourist attraction (core
attraction) in Ubud compared to other regions. Ubud prevents fast food
outlets or fast food runs by international networks in an attempt to
maintain the identity and protection of local cultures (Putra and
Pitanatri, 2016). The decision opens opportunities for local culinary
entrepreneurs to become vital figures in introducing and marketing
local culinary.
Culinary tourism continues to grow and is in great demand right
now. This is not only attracts tourists, but also contributes to the
social, economic and environmental development (Corigliano, 2002).
Areas that can offer and utilize their local culinary and put them as
major tourism products will greatly benefit as the increase value of
their goals. Local culinary entrepreneurs have a central role in the
development of local culinary in a tourism area. From the above
explanations, the problems in this research are: 1) how is the
development of local culinary business in Bali? And, 2) how is the role
of local culinary entrepreneurs in improving Bali tourism? The results
of this study is expected to reveal the role of local culinary
entrepreneurs of Bali and could maximize their contribution to develop
the culinary tourism industry in Bali.
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II. Literature Review

Food is part of the socio-cultural heritage of society, reflecting
the lifestyle of various regions and culinary is something that comes
from rooted in one's culture and tradition (Mitchell and Hall, 2006).
According to Koh&Hatten (2002) itclearly recognizes the importance of
entrepreneurs in tourism development that claims the quality and
quantity of availability of entrepreneurs significantly determines the
size and shape of the scope of tourism because tourism entrepreneurs
are the cause of tourism development. Without the influence of
entrepreneurs it is doubtful that the tourism industry will flourish even
in areas that are profitable and blessed with resources. Ritchie &
Crouch (2003) provides a more dynamic understanding of the role of
entrepreneurs and small businesses in creating competitive advantage.
Competitions that occur in small companies in tourist destinations will
create a superior environment, while interdependence between
companies will encourage cooperation.
Culinary is a term that is currently familiar in the societies, in
terms of Indonesian dictionary culinary is defined as something
associated with cooking (KBBI, 2012). Ardika (2004: 23) explains that
the culinary itself is also understood as one of the cultural components
that can be a tourist attraction. As part of culture owned by society, the
culinary should be preserved to provide economic, social and cultural
benefits for the community. The Balinese community as the owner of
the cuisine with its distinctive "base genep" has been well known by
both domestic and international tourists (Widiastini, 2008). According
Ardika (2011), culinary tourism is an important segment in the tourism
industry; this is caused by various facts among other tourists that they
need to eat and the eating activities. Harvey (2012) defines culinary
tourism as a tourism activity to learn how to appreciate food and drink
in a tourist destination because it is a form of local wisdom, culture,
traditions of visited tourist destinations.
Entrepreneurs' ideas toinfluence development beyond their
individual contributions can be the basis to understand the extent of
their influence on tourism development. In the context of tourism
development, it is influenced by the actions of employers and small
businesses, highlighting the economic aspects through the importance
of collaboration and networking (Thomas et al. 2011: 969). Research
conducted by Putra (2014) "EmpatSrikandiPerempuanBali:
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PeranPerempuandalam Pembangunan PariwisataBerkelanjutan"

examines the role of Balinese women in Ubud in opening culinary
business is a clear efforts as an example of Balinese women who are not
classified as job seekers in the world of tourism, but appeared to be
businesswomen who create jobs opportunity. The availability of jobs for
local workers is one of the foundations for sustainable tourism
development. A similar study was conducted by Pitanatri (2015) on
local culinary business which creates a competitive advantage in Ubud,
with the findings that local culinary entrepreneurs in Ubud have
proved that Bali's culinary is not only potential to improve welfare but
also an opportunity to maintain socio-cultural quality as well as
sustainable environment for appropriate management.
III. Research methods
This study uses qualitative methods, with data collection
techniques conducted by observation on the object of research, in-depth
interviews to research subjects, questionnaires and library research.
The authors make observations on the object of research to obtain
information and explore the formulation of the problem. The next step
is to approach the subject of the research and utilize other sources of
information obtained from the informants. The data used in this study
is the data grouped by the way of the collection. The figures in the
statistics book quoted from the Central Bureau of Statistics (BPS)
report are one of the primary sources. The sources of the secondary
data are data collected by other people or institutions. These data are
obtained from the literature, such as articles in newspapers and the
internet. The articles used are published in print and electronic media.
The researcher also performed simple descriptive statistical analyzes
such as percentages and determine the highest or lowest answers. The
results of this study are expected to reveal the role of culinary
entrepreneurs in tourism development in Ubud. This research was
conducted in Ubud area, Gianyar regency, Bali. The subjects of this
research are the owner and manager of BabiGuling Ibu Oka and
BebekTepiSawah Restaurant that are located in Ubud. The study was
conducted in 2017.
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IV. Discussion
Bali Tourism and Culinary Tourism
Balinese always associate food with the concept of local wisdom
because the food comes from plants either as food or as an
upakara(offerings) material that has religious meanings. Various
scriptures in Bali, which one of them is Dharma Carubanthat is
inherited to the Hindu community as a guide to process and cook
(cuisine). Balinese characteristics such as traditional food seem to be
given a modern touch. Bali as a tourism destination has the potential
for a variety of local food. Many media has been covering Balinese
food,even praising the taste and by its appearance. International
magazine published in Australian,GourmetTraveller (2015), published
an article entitled Bali's Best Local Food, a local man named Maya
Kerthyasa writes that finding local food Bali is easier when we come to
the stalls as for a large part of the restaurant, café, or bar are currently
presenting more western food. Stalls are traditional stores that offer
daily necessities and mostly serve traditional food. A unique food comes
from a mix of spices that can almost be found in any local Balinese food.
Pork, chicken, duck, fish main dish that is roasted over wood coals,
fruit and vegetables served with sliced raw coconut or called Lawar,
and rice has always been the main food and sauce as a complement.
Local foods that were successfully registered by the bloggers and
writers based on their searching when traveling in Bali showed that
tourists is looking for local flavor of each of these foods. In the context
of tourism, the growth of Balinese culinary is due to the motivation of
the travelers who want to experience local food. The motivation comes
from the needs of tourists to eat and drink as a basic need, but
nowadays culinary has become part of the lifestyle, so as to encourage
in particular destinations like Bali to meet these needs by raising local
culinary as a tourist attraction.
Culinary Research Object
During this time, Balinese culinary is consider as supporting
tourism with indispensable existence. Balinese Culinary is not easy to
be introduced as a food that can be consumed by all people because a lot
of votes that the main ingredient of culinary derived from pork. But it
cannot be denied that since long time, one of Balinese culinary, Babi
Guling, has been popular and is consumed by the domestic and foreign
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tourists. This is because the people of Bali as the owner of the culinary
with their trademark spices, “basagenep” have been recognized by both
domestic and international travelers (Covarubias, 2013). TheBalinese
distinctive flavor can be used in almost all Balinese cuisine, including
suckling pig and duck. The following areculinary business profilesas the
subject of this study:
a) Warung BabiGuling Ibu Oka
Warung BabiGuling Ibu Oka in Ubud only serves suckling pig.
Conveniently located in the center of Ubud, Warung BabiGuling Ibu
Oka Ubud is open on three areas in ubudthat are very crowded with
tourists. BabiGuling Oka 1 is located right next to Banjar Pekraman
Ubud and Ubud Palace which is a business location that has been
initiated by Bu Oka since 1960 in Ubud. BabiGuling Oka 2 is located on
Teges street, Peliatan and BabiGuling Oka 3 located in Jero Ubud, a
large family residence of Ibu Oka. In Warung BabiGuling Ibu Oka 3,
tourists are welcome to see the process of making suckling pig early in
the morning at 8:00-10:00 before the stall opened. The whole process of
cooking is done here and the other two stalls received suckling pig from
here as well.
Not only suckling pig process, the process of making Oret and
cooking other ingredients can be immediately seen. Warung Bu Oka 1
is a place of food preparation with a capacity of 100-200 people also
decorated with piglet sculptures ornaments that demonstrate the
distinctiveness of the stall. Warung Babi Guling Bu Oka 2 was the
residence of the Ibu Agung Oka along with her daughter. According to
Agung Suci (the fifth daughter), the stall is established in Teges, not far
from Rudana Museum that has a wider parking area than the first
Warung. From observations during the visit, the three stalls are never
empty. One portion of menu with two kinds of ordinary and special
presentation is at a price of respectively Rp. 50,000 and Rp. 75,000 per
portion. The popularity of Warung BabiGuling Ibu Oka has increased
after several celebrities such as Antonio Bourdain coveredthe
processing of suckling pig. Putra (2014) discloses the development of
mass media and electronic has opened the scope of the local culinary,
celebrities and TV presenter traveled to dig culinary uniqueness for
each destination and introduced to the world through the television
show.
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b) Bebek Tepi Sawah

Bebek Tepi Sawah is a restaurant located on Jalan Raya Goa
Gajah, Br. Teges Peliatan - Ubud Gianyar. This restaurant is not only
serving a menu but also beautiful Balinese landscapes. Bebek Tepi
Sawah Restaurant is built from the simple concept of a well-known
local artist Nyoman Sumerta, which serves preferred food and often
eaten by the family. As a family business, this restaurant prepares their
own spices prepared by the wife of Nyoman Sumerta so that the taste
and quality of the served food is well maintained. Because Nyoman
Sumerta is a painter, then this restaurant is placed in tandem with Pak
Nyoman painting gallery.
The restaurant that was established in 1999 has traditional-
internationalconcept. From the name it could be concluded that
themain menu of the restaurant is duck based dishes and is located
near rice fields. Duck as main menu selection is because ducks are the
characteristic of Ubud. In addition by treating with the views of rice
fields, the cool air and comfortable place, so the restaurant with an
open concept and Balinese paced interior is able to attract tourists and
food lovers to stop by and dine there. Some mainstay menu of Bebek
Tepi Sawahthat is the most attractive one is the menu TepiSawah
Crispy or Grilled Duck.The fried duck is cooked in a traditional way, so
that the meat is very tender but still crisp on the skin. As a
complement, TepiSawah Grilled or Crispy Duck is served with Kalasan
Balinese vegetables from stringbeans,SambalMatah is a simple
concoction of onion, lemongrass and chili doused with coconut oil.
Bebek Tepi Sawah Restaurant starts operating from 10:00 until
22:00. This restaurant is more known to the public because guests who
have visited the restaurant are not only tourists but also artist,
minister, ambassador to the former president of
SusiloBambangYudhoyono. When Bali to host the Miss World 2013
pageant, contestants had the opportunity to visit Bebek Tepi
Sawahrestaurant and presented a menu of TepiSawah Grilled or Crispy
Duck and Sate Lilit which is also a traditional food. The hope to
introduce these dishes to the contestants of Miss World, the traditional
Balinese food will be liftedand known to the world. In addition to the
dishes, the contestants also entertained a variety of Balinese dances
such as Pendet, Barong and Legong. After the show ended, the
contestants are taught Balinese dance directly by the wife Nyoman
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Sumerta who are also a reliable Balinese dancers. Has currently being
known by the people, this restaurant apart from opening several
branches in Bali has also opened branches in Yogyakarta. Located at
Sleman, Yogyakarta, Bebek Tepi Sawah typically presents various types
of cuisine, complete with natural atmosphere. In addition to Balinese
and an open-concept interior, this branch also serves as rice terraces
like the restaurant in the center of Ubud.
Contributions of Local Culinary Entrepreneurs in Developing
Tourism in Bali
Culinary entrepreneurs as subjectsof this research have made
some contributionbecause they have created icons of some famous
culinary business. Both contributions of the culinary entrepreneurs,
Ibu Oka and NyomanSumerta, in supporting the Balinese culinary are
as follows:
a) The Tourism Development through Local Menu
Both of these culinary entrepreneurs when establishingtheir
businesses admittedthat they do not have a specific way or team that to
introduce the food they served in the stall or restaurant. The
traditional way is still used to engage with consumers, receive input
from consumers and then analyze the advantages and disadvantages of
the menus offered. If the stalls and restaurants want to introduce a
new menu, it is done by introducing the menu to the travelers, but
most of the menu is the result of the creativity of entrepreneurs that do
not change the originality of the taste. Warung Babi Guling Ibu Oka for
example, adds vegetable soup on the Babi Guling menu to anticipate
some of the visitors who cannot eat the Lawar. At first the menu was
introduced by word of mouth, which means the information of the stalls
and restaurants are obtained from friends who have visited the place
while the current use of social media such as Facebook and official
website has begun to be treated by using pictures and information
uploaded via social media, the search on the internet for these objects of
this study are listed on Trip Advisor that has reviews of their visitors.
Bebek Tepi Sawahuses official web to share information about the
restaurant, the website is also directly connected to other features in
addition to information about the culinary, the visitors can also find
information about Nyoman Sumerta activity or events held by the
restaurant. Warung Babi Guling Ibu Oka does not indicate the use of
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active social media even it is found out to have a facebook with the
name of the stalls, but the account was created for the needs of the
culinary connoisseur who wants to share the experience during a visit
to Warung Babi Guling Ibu Oka without any involvement of the shop
owner in managing this account. These stalls are joining the Fan page
Indonesian Restaurant in Ubud.
b) Consistent in Keeping Taste and Originality
Consistency of the culinary entrepreneur can be seen on local
menus that range from the menu offered to tourists. They are trying to
maintain the originality of the menu with creativity that they have like
Balinese local menus as Lawar and suckling pig that areserved with
more attractively so travelers are also motivated to taste the Balinese
food. Babi GulingOka has only one kind of main menu to keep the
characteristic of the stalls, besides the traditional processing is also
consistent with the use of firewood from trunk of coffee tree to create a
unique flavor to the suckling pig. Bebek Tepi Sawah has a main
restaurant that is equipped with duck as the main menu and rice paddy
views in accordance with its name. The used spices retainits own flavor
which is processed in order to maintain the confidentiality of recipes
and flavors, while employees only provide the raw material.
c) Popularizing Balinese Culinary
The main types of food served by both culinary entrepreneurs
are Balinese food. Both use signature food concept, the legendary
culinary that has its popularity as an icon of the region. Food that is
categorized as the signature food has not done a lot of innovations on
the main menu. For example Warung Babi Guling Ibu Oka with its
main menu, Babi Guling.Bebek Tepi Sawah, although seems to serve
universal food, but its main menu is crispyduck which is cooked by
Balinese spices and equipped with other Balinese food. Both
entrepreneurs through their mainstay menus, have had roles to
popularizing Balinese food to tourists. Balinese culinary that is
maintain the taste to attract tourists especially when perform some
innovation in terms of presentation and packaging so that Balinese
culinary can be served as a souvenir. Popularizing Balinese food in the
traditional way can still be said to be successful, though many
campaign media that could be used like the social media.
d) Preserving Balinese Culinary
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Consistency in presentation of the menu for decades is an

attempt made by Balinese Culinary entrepreneurs as a contribution to
preserve the Balinese culinary. The lack of recording and documenting
of the Balinese food, has made some Balinese foods are rare to know or
even served. But both Warung Babi Guling Ibu Oka and Bebek Tepi
Sawah has made conservation and preservation of Balinese culinary in
a way still serving Balinese cuisine in their stall, even though they have
been developing their business over the years but the menu still
support the taste of Bali.
e) Strengthening the Culinary Identity of Bali
According to Caplan (2003) in a book entitled "Food, Health and
Identity" states food as language can be understood as a cultural system
through a sense shaped by cultural and social control. Food is very
complex because it can be associated with the customs, history,
traditions of a region. The same with the culture, the food is the
identity of a region, for example, suckling pig, sambal, base genepare
Balinese culinary that exist in every district in Bali. All Balinese
foodsare sourced in spices or base and the characteristic of Balinese
food is basegenep which is a complex seasoning. The use of basegenep is
one form of maintaining the culinary identity in Bali. Although in a
stall or restaurant presenting diverse menu but basegenepisthe main
ingredients that strengthen the identity of Balinese food. Directly, they
have preserved it by presenting it on an ongoing basis without changing
the taste and flavor of the food while maintaining the originality of
Balinese food. Balinese culinary taste that are served by the stalls and
restaurant owners have strengthened the identity of Balinese cuisine in
the eye of the travelers of diverse Balinese culinary, as an identification
of Bali as a tourist destination.
f) Supporting the Bali Tourism
Businessmen contributionsin favor of Bali tourism through
culinary business is shown by the consistency of culinary business they
have founded. As a result of this culinary business activities have an
impact on tourism in Bali. Culinary businessevolved over the years has
opened up opportunities of local food to be known by tourists. The food,
stalls, and restaurants have created exciting and fun culinary activities
for tourists, as well as introducing other types of local foods. Culinary
business can be developed in Bali to lift various types of Balinese
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culinary,with a touch of creativity that will increase the development of

tourism in Bali. Travelers can easily find a shop and a restaurant
serving Balinese food.
Businessman contributions in support of tourism in Bali have
been shown to establish brandingof Balinese food. The served Balinese
menu has created branding of local Balinese culinary which also
indirectly promote Balinese food for local and foreign tourists. Activity
such as enjoying the local food menu is an activity that can directly
introduce the traditions and culture of Bali. This activity became part
of the stalls and restaurants in introducing the cooking traditions like
Warung BabiGuling Ibu Oka which invite tourists to join the activities
from butchering to the process into suckling pig and a variety of other
foods, showing the tourists that they are still using firewood in cooking
process and also introducing Balinese spices as mainstay in every
Balinese cuisine. BebekTepiSawah often hold events from time to time
such as Balinese dance performances like Pendet, Barong, and Legong,
so in addition to get the Balinese with flavors of Bali, visitors can also
enjoy direct form of Balinese culture. Moreover, NyomanSumertaas the
owner is also a painter of Balinese painting, so visitors may look around
and buy the painting in the art shop owned by NyomanSumerta which
is also available in the restaurant. The two businessmen also decorate
their stall and restaurant premises with various Balinese ornaments
such as sculptures, carvings and polengfabrics which are identical to
Bali so it reinforces the impression for the tourists. In addition, the
culinary businesses are also into labor of many local people, mainly
from local communities around the location.
V. Conclusion
Based on the discussion, the followings are the conclusions of
this study. Bali as a tourist destination that also offers a variety of local
culinary certainly has many competitors in sales. Culinary
entrepreneurs contribute to two way directions in the context of local
culinary preservation and the development of tourism in Bali. In the
context of the preservation of the local culinary, Balinese culinary
entrepreneur has successfully introduced and strengthened the identity
of Balinese culinary menus to tourism industry. Tourism development
has a great opportunity for them to offer the typical of local culinary
menu, which is got from the riches of Balinese culinary.
Correspondingly, in the context of tourism, Balinese culinary
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entrepreneurs play an important role to strengthen the image of Bali

tourism with the existing local gastronomic peculiarities. The tendency
of tourists to enjoy local food when visiting a destination is responded
by Balinese culinary entrepreneurs by providing Balinese cuisine. Role
of both the business entrepreneurs in Ubud, Warung Babi Guling Ibu
Oka and Bebek Tepi Sawah, in developing tourism in Bali cannot be
separated from the local culinary influences into the main menu.
Culinary entrepreneurs have a role in the development of cultural
tourism, through three things: popularizing, preserving, and
strengthening local culinary identity. As businessmen they show their
role to the public in the context of the development of tourism in Bali in
the culinary field. Bali with its local culinary diversity requires the
attention of various parties, not only by the culinary entrepreneurs, but
also support from the government and local residents of Bali, especially
with regard to development and tourism policy to assist communities in
exploiting and processing of traditional cuisine into culinary tourism
product.
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ANALYSIS OF INCOME TAX INCENTIVE FOR MICRO,

SMALL AND MEDIUM ENTERPRISES (MSMEs) AFTER THE
ISSUE OF GOVERNMENT REGULATION NO. 23 OF 2018
Made Laksmi Sena Hartini

Faculty of Economy, Mahasaraswati University, Bali, Indonesia
Abstract
The increasing number of micro, small and medium enterprises
(MSMEs) every year in Indonesia proves that these enterprises has a
significant role in Indonesia economy growth. However, this increase
is not accompanied by the increase of income tax revenue from this
sector. An initiative is taken by the government to improve tax
revenue from these enterprises by giving incentive of income tax
revenue through Government Regulation No. 46 of 2013 (hereinafter
is stated as PP 46/2013) which was issued on 12 June 2013, and then
revised by Government Regulation No. 23 of 2018 (hereinafter is
stated as PP 23/2018) which was issued on 8 June 2018 and
effectively valid since 1 July 2018. This study used explorative and
descriptive approach. This is a literature study with qualitative
approach. Based on the conducted study, there was significant
change in tax regulation after the issue of the Government
Regulation about the incentive of income tax for MSMEs in
accordance with PP 23/2018 if it is compared to previous regulation.
The absence of Ancillary Regulation of PP 23/2018 causes confusion
in the implementation of this regulation.
Keywords: MSMEs, Income Tax, Tax Incentive, PP 46/2013, PP
23/2018
Introduction
The importance of Micro, Small and Medium Enterprises
(MSMEs) has been recognized worldwide due to its significant
contribution to gratifying various social economy objectives such as
higher growth of employment, output, promotion of exports and
fostering entrepreneurship (Keskin et al., 2010).
In Indonesia, contribution of MSMEs has strategic role in
economy growth and employment. MSMEs has 99.99% proportion from
the total of entrepreneurs in Indonesia and supports 60% of Gross
Domestic Product (GDP) (Central Bank of Republic of Indonesia, 2016).
It is indicated by the rapid growth of MSMEs in Indonesia every year,
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even the number of MSMEs after the monetary crisis of Indonesia in

1997-1998 is not declining (Central Bureau of Statistics Republic of
Indonesia, 2016).
Besides that, based on annual report of Ministry of Cooperation
and Micro, Small and Medium Enterprises year 2016 showed that until
2015 the number of MSMEs was 59,267,759 units. It increased by
1,372,038 units from the last data published by Ministry of Cooperation
and Micro, Small and Medium Enterprises (Ministry of Cooperation
and Micro, Small and Medium Enterprises, 2017). In another words, it
can be said that MSMEs has been able to prove its existence in the
economy of Indonesia.
However, in tax sector, MSMEs could not dominantly contribute
in the tax revenue. Based on annual report of Directorate General of
Taxes in 2016, realization of Final Income Tax Revenue in 2016 was
IDR 117,676.78 Billion or only 64.37% from the target of Final Income
Tax Revenue in 2016. If it is compared to 2015, there was decrease of
Final Income Tax Revenue realization of 1.66% in which the realization
in 2015 was IDR 119,665.59 (Directorate General of Taxes, 2017).
Therefore, in 2018, the increase of MSMEs tax revenue is of the focuses
of Ministry of Finance through Directorate General of Taxes (DGT) in
which the Ministry keeps improving the tax participation level of
MSMEs by creating friendly tax ecosystem and easy tax mapping for
the MSMEs (Gustomo; 2018). In order to realize the increase of tax
revenue in MSMEs sector, the Government provides tax incentive for
the MSMEs by issuing Government Regulation No. 23 of 2018
(hereinafter is stated as PP 23/2018) which replaced Government
Regulation No. 46 of 2013 (hereinafter is stated as PP 46/2013).
The issuing of PP 23/2018 concerning Income Tax on Operating
Income Received or Acquired by Taxpayers Having Certain Gross
Turnover or well-known as Income Tax Incentive of MSMEs contains
some significant changes if it is compared to the previous regulation.
Indeed, this changes would affect the Taxpayer of MSMEs who can and
will implement this regulation.
Literature Review
Micro, Small & Medium Enterprises (MSMEs)
MSMEs is a business unit managed by some people or family
which is mostly Indonesian entrepreneurs and has a strategic role in
national economy development (Keziana, Made & Wirshandono, 2016).
MSMEs can be defined as an independent productive business unit,
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which is managed by individual or business entity in all economy sector

(Tambunan, 2012)
Classification of Micro, Small & Medium Enterprises
(MSMEs) Based on Law No. 20 of 2008 about MSMEs
Based on the wealth and sales result in Law No. 20 of 2008, the criteria
of MSMEs are as follows:
1. Micro Enterprises
a. Having maximum net wealth of IDR 50,000,000.00 (fifty million
rupiah) not including the land and building in which running the
business; or
b. Having maximum annual sales of IDR 300,000,000.00 (three
hundred million rupiah).
2. Small Enterprises
c. Having net wealth more than IDR 50,000,000.00 (fifty million
rupiah) until maximum IDR 500,000,000.00 (five hundred million
business; or
d. Having annual sales more than IDR 300,000,000.00 (three
hundred million rupiah) until maximum IDR 2,500,000,000.00
(two and half billion rupiah).
3. Medium Enterprises
a. Having net wealth more than IDR 500,000,000.00 (five hundred
million rupiah) until maximum IDR 10,000,000,000.00 (ten billion
business; or
b. Having annual sales more than IDR 2,500,000,000.00 (two and
half billion rupiah) until maximum IDR 50,000,000,000.00 (fifty
billion rupiah).
Classification of Micro, Small & Medium Enterprises (MSMEs)
Based on Income Tax Law No. 36 of 2008
In taxation, definition of MSMEs is not specifically regulated in Income
Tax Law, yet implicitly in the rate calculation of Article 31E of Income
Tax Law, provides facility of rate reduction for Taxpayer of Company
with gross turnover until IDR 4.8 billion of 50% from the applicable
rate. Considering the amount of gross turnover until IDR 4.8 billion is
categorized as micro, small & medium enterprises based on Law No. 20
of 2008 concerning MSMEs, so it can be concluded that this rate is
given for Taxpayer of Company with category of MSMEs (Inasius,
2015).
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Income Tax
Based on Income Tax Law No. 36 of 2008, income tax is tax imposed on
any increase in economics capacity received by or accrued by a
Taxpayer from lndonesia as well as from offshore, which may be
utilized for consumption or increasing the taxpayer's wealth, in
whatever name and form. Based on the deduction and/or collection,
Income Tax is divided into 2 (two) namely Final Income Tax and Not-
final Income Tax. Final Income Tax is an income tax with final tax
imposition (end) so it cannot be credited (deducted) from payable
Income Tax total in the end of tax year (Resmi, 2014).
Tax Incentive
Tax Incentive is all available or provided financial or non-financial
facilities for the taxpayer by a tax system. Definition of tax incentive is
wide which covers anything providing benefits for the taxpayer. Tax
incentive can be defined as a government policy (Nurlita, 2012). Tax
incentives are relief’s granted to tax payers or industries in the form of
set-offs from the total
income before tax liability is determined. It could be in form of tax
holidays or waivers. It is
established by legislations or statute authorizing such payment of tax
(Uwaoma & Ordu, 2016).
Research Method
This study used explorative and descriptive approach. Method of this
study used literature study, i.e. by collecting and reading literatures
such as book, journal, article, and Law of Taxes as well as the technical
regulations.
DISCUSSION
Income Tax for MSMEs in Indonesia based on Income Tax Law
No. 36 of 2008
MSMEs can be individually or in form of company. Based on
Income Tax Law No. 36 of 2008, subject of income tax can be in form of
company taxpayer or individual taxpayer. In taxes, MSMEs is
categorized as a business with turnover/gross revenue below or not
more than IDR 4.8 billion in one tax year. In Article 31E of Income Tax
Law No 36 of 2008, it is stated that Resident entity taxpayer with gross
income of IDR 50,000,000,000.00 (fifty billion rupiah) receives facilities
in the form of reduction of the rate by 50% (fifty percent) of the rate as
referred to in paragraph (1) subparagraph b and (2a) of Article 17
imposed on taxable Income from the part of the gross revenue of IDR
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4,800,000,000.00 (four billion, eight hundred million rupiah). From the

description of Article 31E, it can be referred that for MSMES company
with turnover/gross revenue until IDR 4.8 Billion will have rate
deduction of 50% from normal rate based on Article 17 paragraph 2 of
Income Tax Law No.36 of 2008, i.e. 25%, in which with this rate
deduction so the effective tax rate is 12.5%. Meanwhile, for individual
MSMEs, the imposition of income tax is calculated by multiplying
Taxable Income with Income Tax Rate of Article 17 paragraph 1 of
Income Tax Law No. 36 of 2008. Income Tax Rate of Article 17
paragraph 1 of Income Tax Law No. 36 of 2008 is divided into four
levels, namely for taxable income until IDR 50 million is 5%, taxable
income between IDR 50 million and IDR 250 million is 15%, taxable
income between IDR 250 and IDR 500 million is 25%, and for taxable
income more than IDR 500 million is 30%. Meanwhile, Taxable Income
means business net income after reduced by Non-Taxable Income. To
get business net income of individual taxpayer, it can be done by using
bookkeeping or net income calculation by norms which is further
regulated by Minister of Finance Regulation.
Income Tax Incentive for MSMEs in Indonesia based on
Government Regulation No. 46 of 2013 (PP 46/2013)
PP 46/2013 was issued on 13 June 2013 and effective valid
since 1 July 2013. With the existence of this regulation, it is expected
that there will be an increase of participation in tax payment, the
increase of income tax revenue from taxpayers who have certain gross
turnover, and increase the tax revenue for government so the chance of
government to improve people’s welfare will also improve (Hakim &
Mildawati, 2016).
PP 46/2013 is a Final Income Tax on Income from business
received or earned by taxpayer having certain gross turnover.
Taxpayers who have certain gross turnover as mentioned in PP
46/2013, shall be Taxpayer fulfilling the following criteria based on
Article 2 paragraph (2) PP 46/2013 :
a. Individual Taxpayer or Corporate Taxpayer excluding
permanent establishment; and
b. Receiving income from business, excluding income from service
related to independent work, with gross turnover of not more
than IDR 4,800,000,000.00 (four billion eight hundred million
rupiah) in 1 (one) Fiscal Year.
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Income received or earned by Individual Taxpayers from services in

relation to independent work based on Regulation of the Director
General of Taxes No. PER-32/PJ/2015 consists of experts performing
independent work, consisting of attorneys, accountants, architects,
physicians, consultants, notaries, Land Deed Officials, appraisers, and
actuaries; musicians, masters of ceremony, singers, comedians, movie
actors, television actors, advertisement models, movie directors, movie
crew, photo models, male/female runway models, stage actors, and
dancers; athletes; advisors, lecturers, trainers, speakers, counselors,
and moderators; authors, researchers, and translators; advertisement
agents; project supervisors or managers; brokers; salesmen; insurance
agents; distributors of multi level marketing companies or direct sales
and other similar activities.
Not included as individual Taxpayer as intended in paragraph (2)
of PP 46/2013 shall be individual Taxpayer who conducts trade and/or
service business activities, which business:
a. uses knock-down facilities or infrastructures, either permanent
or non-permanent; and
b. uses a part of or the entire place for public interests not
designated as business or trade place.
Not included as corporate Taxpayer as intended in paragraph (2) shall
be:
a. corporate Taxpayer that is not commercially operating yet; or
b. corporate Taxpayer that in the period of 1 (one) year after
commencing commercial operation obtains gross turnover of
more than IDR 4,800,000,000.00 (four billion eight hundred
million rupiah).
In Article 3 & 4 of of PP 46/2013 explained that :
a. The amount of tariff of final Income Tax as intended in Article 2
shall be 1% (one percent).
b. The imposition of Income Tax as intended in paragraph (1) shall
be based on the gross turnover from business in 1 (one) year
from the last Fiscal Year before the relevant Fiscal Year.
c. In the event that cumulative gross turnover of a Taxpayer in a
month has exceeded the amount of IDR 4,800,000,000.00 (four
billion eight hundred million rupiah) in a Fiscal Year, such
Taxpayer shall remain subject to the tariff of Income Tax
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already stipulated based on the provisions as intended in

paragraph (1) up to the end of the relevant Fiscal Year.
d. In the event that the gross turnover of a Taxpayer has exceeded
the amount of IDR 4,800,000,000.00 (four billion eight hundred
million rupiah) in a Fiscal Year, the income received or earned
by the Taxpayer in the next Fiscal Year shall be subject to tariff
of Income Tax based on the provisions of Income Tax Law.
e. Tax collection basis used to calculate final Income Tax as
intended in Article 2 paragraph (1) shall be the amount of gross
turnover every month.
Implementing Regulation which regulates Procedures of
Calculation, Payment, and Report of Final Income Tax PP 46/2013 is
regulated in Minister of Finance Regulation No. 107/PMK.011/2013, in
which in Article 4 paragraph (2) it is stated that the basis of Final
Income Tax imposition is the total of monthly gross turnover, for every
place of business activity. Article 6 regulates the exemption from
withholding tax by another party by requesting the Exemption
Certificate called “SKB”. Article 10 also regulates mechanism of tax
payment that should be carried out by Taxpayer who gets income or in
other words the tax payment is carried out by themselves.
PP 46/2013 can be considered as one of tax incentive for MSMEs,
since by using scheme of Final Income Tax calculation with 1% rate
which is based on Taxpayer gross turnover record without being
required for writing bookkeeping, surely makes it simple and easy for
the Taxpayer if it is compared to the implementation of Income Tax
Rate Article 31E or Income Tax Rate Article 17 of Law of Income Tax
No 36 of 2008. It is in line with the purpose of issuing this regulation,
i.e. to ease both individual and company Taxpayer who have certain
gross turnover. The study conducted by Syafiqurrahman, et.al. (2017)
concluded that PP 46/2013 positively affects the existence of MSMES,
and the implementation of PP 46/2013 about Final Income Tax Rate of
1% from the gross turnover helped MSMEs in increasing their income
and venture capital. PP 46/2013 also positively affected MSMEs
Taxpayer compliance in paying tax because it eases and simplifies tax
calculation of the Taxpayer, so MSMEs taxpayer is getting easy to
calculate and pay their tax.
The implementation of this Tax Incentive also raises contra,
besides it is considered not significantly increasing tax revenue, which
is supported by the study conducted by Hakim & Nangoi (2015). This
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study focused on the effect of PP 46/2013 implementation on the

growth of Taxpayer and Revenue of Final Income Tax in Manado Tax
Office. Finding of this study showed that Revenue of Final Income Tax
from MSMEs for 17 months after the issuing of PP 46/2013 fluctuated
and categorized as very less and there was declining of taxpayer growth
of 0.23%. It showed that the effort of General Directorate of Taxes to
increase the potency of tax revenue, specifically MSMEs Tax, was not
well-achieved. It is also proven by Syarifudin (2015) in his study about
the implementation of Final Income Tax PP 46/2013 and its
implication. Syarifudin concludes that the implementation of PP
46/2013 seems to be “winging” convenience which means giving tax
administrative facility but do not consider the taxpayer financial
condition. The implementation of 1% single rate tax from the turnover
benefits taxpayer who have high margin profit because the tax will
decline while for the low margin profit in contrast will raise.
Income Tax Incentive for MSMEs in Indonesia based on

Government Regulation No 23 of 2018 (PP 23/2018)
By considering the evaluation result of PP 46/2013

implementation, it was considered not significant to the tax revenue.
The government issued new Tax Incentive for MSMEs through PP
23/2018. It was legalized on 8 June 2018 and valid effectively on 1 July
2018. The purpose of providing this Tax Incentive is to ease and
simplify the Taxpayer in conducting their tax obligation, on the
accepted or gained income of the business which have certain gross
turnover and subjected to final income tax in certain period of time.
The issuing of this regulation is basically expected able to provide
easiness and fairness to the small entrepreneurs to contribute in
national development with lower tax payment. By the legalization of
PP 23/2018 so the Tax Incentive for MSMEs which is regulated in PP
46/2013 is no longer valid and replaced New Income Tax which is
regulated in PP 23/2018.
This new Tax Incentive provision gives new hope for taxpayer
especially MSMEs i.e. by implementing 0.5% Final Income Tax Rate
from gross turnover which is regulated in Article 2 paragraph (2) of PP
23/2018. There is rate reduction of Final Income Tax compared to PP
46/2013 as much as 1%. This reduction surely decreases the tax burden
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of MSMEs taxpayer and it is expected to bring positive effect on the

business development of the MSMEs taxpayer.
The same as PP 46/2013, in PP 23/2018 is also regulated about
criteria of taxpayer that could use this regulation, which is regulated in
Article 3 paragraph (1) stated that taxpayers having certain gross
turnover subject to final Income Tax as intended in Article 2 paragraph
(1) shall constitute: Individual Taxpayers; and Corporate Taxpayers in
the form of cooperatives, limited partnership, firms, or limited liability
companies, receiving or earning income with gross turnover of not
exceeding IDR 4,800,000,000.00 (four billion eight hundred million
rupiah) in 1 (one) Fiscal Year.
Different with PP 46/2013, PP 23/2018 provides more detail
regulation related to taxpayer that cannot use PP 23/2018 as stated in
paragraph (1) shall as follows :
a. Taxpayers choose to be subject to Income Tax based on the tariff
of Article 17 paragraph (1) sub-paragraph a, Article 17
paragraph (2a), or Article 31E of Income Tax Law;
b. Corporate Taxpayers in the form of limited partnership or firms
established by several Individual Taxpayers having special
expertise which deliver services similar to the services in
relation to independent work as intended in Article 2 paragraph
(4);
c. Corporate Taxpayers obtain Income Tax facilities based on:
Article 31A of Income Tax Law; or Government Regulation
Number 94 Year 2010 regarding Calculation of Taxable Income
and Settlement of Income Tax in the Current Year as well as the
amendments thereto or replacements thereof; and
d. Taxpayers in the form of Permanent Establishment.
Taxpayer that cannot use PP 23/2018 as stated in paragraph (2)
subparagraph a, should deliver notification of General Directorate of
Taxes and for the following Tax Years cannot be subjected for Income
Tax based on PP 23/2018. Regulation in PP 23/2018 indicates that
individual Taxpayer who conducts trade and/or service business
activities, which business: uses knock-down facilities or infrastructures,
either permanent or non-permanent; and uses a part of or the entire
place for public interests not designated as business or trade place and
also companies that have not yet commercially operated or have not
passed a period of 1 year since commercially operating can utilize tax
incentive facility of PP 23/2018. In other words, street vendors and
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newly established companies are now able to utilize 0.5% tax rate
facilities without waiting for a period of 1 year after commercially
operating. Besides that, PP 23/2018 provides option to the taxpayer to
use Income Tax based on PP 23/2018 or choosing to be subjected of
Income Tax based on Law of Income Tax No 36 of 2008 by delivering
notification. PP 23/2018 also provides emphasis related to Income Tax
imposition upon company which is established by several Individual
Taxpayers having special expertise which deliver services similar to the
services in relation to independent work, where this has not previously
been regulated in PP 46/2013.
Related to definition of gross turnover is regulated in Article 4
paragraph (1) PP 23/2018 stated that The amount of certain gross
turnover as intended in Article 3 paragraph (1) shall constitute the
amount of gross turnover in 1 (one) year of the last Fiscal Year before
the Fiscal Year concerned, determined based on the entire gross
turnover of business, including gross turnover of branches. Added in
Article 6 about the definition of gross turnover shall constitute
remuneration or replacement value in the form of money or value of
money received or earned from business, before deducted by discount of
sales, cash discount, and/or similar discounts. The provision in this
article are improvement from PP 46/2013, where previously there was
no detail regulation related to definition of gross turnover so it was
vulnerable to create multiple interpretations. It surely could cause
mistakes in tax imposition and affecting tax revenue.
In Article 5 PP 23/2018, it is regulated the period of this Tax
Incentive implementation as follows :
1. Certain period of time for the imposition of Final Income Tax as
intended in Article 2 paragraph (1) shall be a maximum of:
a. 7 (seven) Fiscal Years for Individual Taxpayers;
b. 4 (four) Fiscal Years for Corporate Taxpayers in the form of
cooperatives, limited partnership, or firms; and
c. 3 (three) Fiscal Years for Corporate Taxpayers in the form of
limited liability companies.
2. The period of time as intended in paragraph (1) shall be calculated as
from:
a. The Fiscal Year the Taxpayers are registered, for Taxpayers
who are registered as from the coming into effect of this
Government Regulation, or
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b. The Fiscal Year of the coming into effect of this Government

Regulation, for Taxpayers who were already registered prior to
the coming into effect of this Government Regulation.
In Article 7 PP 23/2018 is regulated regarding the treatment of tax
imposition after the period stated in Article 5 has expired, stated that:
a. With regard to Taxpayers as intended in Article 3 paragraph (1)
whose gross turnover in the current Fiscal Year has exceeded
IDR 4,800,000,000.00 (four billion eight hundred million
rupiah), the income from business shall remain subject to the
tariff of Income Tax as intended in Article 2 paragraph (2) up to
the end of the Fiscal Year concerned.
b. The income from business as intended in Article 2 paragraph (1)
received or earned in the following Fiscal Years by Taxpayers as
intended in paragraph (1) shall be subject to Income Tax based
on the tariff of Article 17 paragraph (1) subparagraph a, Article
17 paragraph (2a), or Article 31E of Income Tax Law.
Regulation in Article 5 and 7 PP 23/2018 are improvement of previous
regulation, i.e. this Article emphasizes the period of using this Tax
Incentive for MSMEs which is adjusted with the owned business form.
It indicates that Incentive of 0.5% rate of Final Income Tax could not
be used forever. By the end of the period, the taxpayer should use
calculation of Income Tax at normal rate based on Law of Income Tax
No 36 of 2008.
In Article 8 PP 23/2018 it is stated that Income Tax payable as
intended in Article 6 paragraph (3) shall be settled with the following
methods that are paid by the Taxpayers themselves having certain
gross turnover; or withheld or collected by Tax Withholders or
Collectors in the event that the relevant Taxpayers conduct
transactions with the parties appointed as Tax Withholders or
Collectors. Self payment of Income Tax payable as intended in
paragraph (1) sub-paragraph a must be made every month.
Withholding or collection of Income Tax payable as intended in
paragraph (1) sub-paragraph b must be conducted by Tax Withholders
or Collectors for each transaction with Taxpayers subject to Final
Income Tax based on this Government Regulation. Further provisions
on the procedure for payment as intended in paragraph (2) and the
procedure for withholding or collection as intended in paragraph (3)
shall be stipulated in a Regulation of the Minister of Finance. There are
additional regulation in this Article compared to the previous
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regulation, where in PP 46/2013 with its technical regulation of

Minister of Finance Regulation No. 107/PMK.011/2013, the procedure
of tax payment is done by self-payment mechanism, but in PP 23/2018,
it can be also done by tax deduction by another party. However, it is not
clearly explained in detail about the category of taxpayer that could do
tax deduction and tax collection based on this regulation.
Related to deduction of Final Income Tax by other party which is
regulated in Article 8 PP 23/2018, so in Article 9 described about
certificate application of using PP 23/2018 stated that in the event that
the Taxpayers subject to Income Tax based on this Government
Regulation are conducting a transaction with Tax Withholders or
Collectors as intended in Article 8 paragraph (1) sub-paragraph b, the
aforementioned Taxpayers must file an application for a statement
letter to the Director General of Taxation. The Director General of
Taxation shall issue a statement letter stating that the relevant
Taxpayers are subject to Income Tax based on this Government
Regulation, based on the application from Taxpayers as intended in
paragraph (1). Further provisions on the procedure for filing an
application for and issuing the statement letter as intended in
paragraph (1) and paragraph (2) shall be stipulated in a Regulation of
the Minister of Finance. This Article indicates that there is no need use
of Exemption Certificate called “SKB” to avoid tax deduction by other
party based on PP 46/2013, but it is replaced by Certificate of the Use
PP 23/2018 called “S-Ket”.
Closing
Government seeks to increase the potential of tax revenue from
the MSMEs sector by providing Income Tax Incentives specifically for
MSMEs. These tax incentives are stated in PP 46/2013 which was later
replaced by PP 23/2018. Issuance of PP 23/2018 is a refinement of tax
incentive rules for MSMEs. In PP 23/2018 there are some significant
changes when compared with PP 46/2013, which includes changes in
tariffs, changes in tax subject exceptions, addition of regulations related
to the period of use of tax incentives, the addition of a definition of
gross turnover, the addition of taxation methods and the use of a
certificate of the Use PP 23/2018 called “S-Ket”. This difference in
regulation must be a concern of MSMEs taxpayers because this will
affect the procedures and administration in the implementation of PP
23/2018 which is effective as of July 1, 2018.
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Related to the above conclusion, some suggestions can be

proposed by the researcher related to tax imposition if the period of
using tax incentive of PP 23/2018 has been over. There should be
special regulation related to procedure simplification of tax imposition
for Individual Taxpayers because so far, most of them just conducted
the record of transaction not full bookkeeping. It can be done by
providing application which is easily understood by the Individual
Taxpayers who do not conduct full bookkeeping. Besides that, there
should be urgently issued ancillary regulation of PP 23/2018 so there
will not be confusion in the implementation such as related to the
procedure of tax deduction of Final Income Tax PP 23/2018 by other
party.
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LEARN TO EARN: ASSESSING ECONOMIC IMPACT OF

COMMUNITY BASED TOURISM IN GILI TRAWANGAN,
INDONESIA
Putu Diah Sastri Pitanatri
Hospitality Department - Bali Tourism Institute
diahsastri@gmail.com
This article examines the economic impact of Gili Trawangan through

qualitative approach by examining relevant stakeholders; government,
business owners and local communities. Using the Doxey’s irritation
index and the concept of three elements of sustainability; this research
indicates that Gili Trawangan is currently in the apathy phase. This
phase is shown from the mass commercialization of tourism businesses
within this island. As of result; there is also strong economic impacts
towards the practices of community based tourism in the island. Direct
and indirect impacts; affect even those who are not directly involved
with tourism businesses.The locals also attempt to learn new skills, so
they can also take part of this business. As business are mostly low
scale, leakages are also minimum; making most of revenues goes to the
locals. Tourism indeed has changed this once poor, uninhabitedisland
into a mesmerizing destination which attract not only tourist to come
but also creates a new hope of local welfare.
Keywords: Doxey, community, economic impact, local welfare
Introduction
Gili Trawangan is an island located off the coast of Lombok in
Indonesia and the largest island of the three Gilis (Gili Air and Gili
Meno once un-inhabitant, this island has now become one of the top
notch destination when travellers are visiting Bali. Island hop usually
consist of visiting Bali and the three Gilis. The island got it’s fame from
shifting of travellers who shared their experience through blogs, vlogs
and their social media.
Tourism is the foremost important economic activity on the
island. Highly dependent from Bali, more than 85% of the families on
Gili Trawangan are employed through tourism in some form (interview
20, 2018). Most travellers on this island are classified as backpackers as
until to date there areonly two high end resorts on this Island. Gili
Trawangan along with the two Gilis, motorized vehicles are prohibited.
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Island transportation consists ofbicycles and cidomo’s (horse drawn

traps).
As the most developed islandfor tourism of all three GiliIsland,
Gili Trawangan is dedicated for young travellers infamous for its
“magic mushroom”. Even through it is illegal in Indonesia, some
travellers are even putting where to find and how to consume this type
of drug on their website (www.jonesaroundtheworld.com, 2018). Beside
ease of access to drugs, the island is also infamous for “party goers”.
Jiggy boat party is one example with highly rated amongst travellers in
TripAdvisor. This party scoring 4.5 out of 5 and raked amongst 15 best
things to do in the island (TripAdvisor, 2018). During interview with
some participant, they clearly mention that they wouldn’t mind to
sleep by the beach or at a very low-cost homestay as long as they can
party.
Another polemics identified is the issue of the existence and the
resilience of its local communities. The issue of the existence of its
inhabitants becomes interesting considering that most visitors on Gili
Trawangan Island are foreigners. As Lombok is known as part of Halal
Tourism (Sharia based tourism), inhabitants must necessarily adapt to
it. From different looks, different capital, to different languages. All
these differences then push the indigenous population to be persistent
with three things: cultural diversity, pluralism, and lifestyle diversity.
Zoning violation of resort development area in Gili Trawangan
by private parties is another problem which arises. In the spatial map
released by the Governor Decree of Nusa Tenggara Barat No. 500 in
1992 has described the boundaries of zoning areas designated for
development of tourism resort in Gili. The Spatial Map has actually
portrays zoning of designated area for accommodation purpose, marine
tourism, supporting facilities, buffer areas, embankment, golf course
and designated for housing and cultivation. Unfortunately, this zoning
which has been made is violated, various forms of accommodation are
growing rapidly. Massive construction is not only builtin the zoning
area only, but has already reached the designated area of buffer and the
residential area of the local population.
This phenomenon is likely due to increased number of private
parties who are interested to make investment in Gili Trawangan. The
local government took this as an opportunity as it will boost the
regional income that can be used to develop the island. Hence, with the
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proliferation of accommodation businesses, of course, the designated

accommodation area can not accommodate existing accommodation
efforts. In addition to the limitations of land for designated
accommodation, the spread of accommodation business is also due to
the accommodation business owners wanting to occupy a new, deserted
location in order to get a different view from other accommodation
businesses
There have been some leads for sustainable tourism
implementedprior to this study being conducted. These initiatives
however faced slow implementation, andalthough developed perfectly
in theories, and as many theories, it havenot been entirely implemented
in the practice.One of the leadswas developed by the Koperasi Janur
Kuning which one of it’s business was to rent Cidomos. Even though
this cooperative belong to the local, there’s also an attempt of monopoly
as this horse cart only belong to several people. Should anyone wanted
to buy, it is being sold at unreasonable price of IDR700 million to 1.2
Billion (around USD$ 500.000-800.000) per cidomo.
Despite its problems, the development of Gili Trawangan has
becomes magnet for the people outside the island. People who were
originally farmers, traders and fishermen, eventually participated in
the tourism business. They began to learn various skills to earn the
sweetness of tourism.
The concept that developed in Gili Trawangan is a duplication of
what is happening in Bali. Community Based Tourism becomes so
strong on this island. Despite many literature doubts tourism benefits
the community of small island, it is felt that tourism benefit even to
those who are not directly involved in the business. Hence this article
tries to analyzeeconomic benefit to local community through qualitative
approach. This article will become a part for our next research in
foreseeing the other two elements of sustainability.
Theoretical Review
Community Based Tourism
As part of creating sustainability in tourism destination, the
urge of forging local community based tourism in a rural area has
become the current trend. This form of tourism is promoted to give
most benefit to the locals while at the same time create a memorable
experience to it’s visitor. Community Based Tourism (CBT) according
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to Goodwin and Santilli is tourism owned and managed by local

community and proposed to deliver wider community benefits. In other
words, CBT highlighted on local participation, and at the same time
boosting control to the community in order to achieve more benefits to
the local livelihood.
CBT provide gender equity on many destination. In many cases
in Indonesia, CBT provide opportunities for women to be able to
participate and contribute in developing it’s region. In Bromo Tengger
Semeru for example, woman is highly involved in managing local
homestay (Putra and Pitanatri, 2016). Homestay development is highly
dependable on women, and this was against the local culture which
puts “men first” instead of women. In Bromo Tengger Semeru,
business is managed locally and mostrevenues also goes directly to the
local.
The concept of CBT providesopportunity to create jobs, and
generate entrepreneurial chances for local communities even though
they’re from different backgrounds, skills, and experiences. CBT is also
known as a worldwide plan where the concept has been used to increase
rural economies while at the same time providing opportunities to
improve community livelihood. In terms of community capacity
building, CBT is also considered as partof community development
tool.Through, CBT the ability of local communities to manage tourism
resources while at same time ensuring its participation, is strengthen
(Jamal & Getz, 1995). While according to Asia Pacific Economic
Cooperation (2000), CBT enables local community to generate income,
diversify local economy, preserve culture, conserve the environment,
and provide educational opportunities. At the same time it also provide
local community with alternative sources of income as it also becomes a
poverty reduction tool.
WWF defined CBTas a form of tourism “where the locals has
significant control over, and participation in, its development and
management, and a major percentage of the benefits remain within the
community.” WWF accepted that the concept of community depends on
local “social and institutional structures” and accepted that it “must
also embrace individual initiatives within the community” (Goodwind
and Santilli, 2009; WWF, 2001)
Pitanatri (2018), mention that homestay is an applied example
of CBT in Indonesia. Homestays generate the concept that tourism
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must takes environmental, social and cultural sustainability into

account. As part of Indonesia’s Ministry of Tourism top priority
program, homestay is managed and owned by the local of which it’s
existence is to benefit the local, while at the same time enables visitors
increase their awareness and learn about the community and their way
of life.
Even though local communities are the primary stakeholder in
the tourism development, the local community’s attitude can affect the
development of CBT projects. Due to the lack of knowledge and
resources as well as skills and expertise in tourism, local community in
many destination is not always working together as one group. Thus,
the effectiveness of CBT requires extensive community participation
especially in assessment and planning as well as implementation of
programs. The community involvement in this processes give high
potential to empower its members to improvetheir skills, knowledge,
and confidence to ensure tourism development in their communities.
Sebele (2001) highlight that rather getting benefits, some community
members feel that cost they must incur by participating in CBT is far
outweighed the benefits. One the reason is caused by the terms and
conditions which has been set by the local government, due to
encourage local community to participate in CBT.
Hence, there is a very wide range of examples and different
linkages between the projects and the local community.As the major
determinant of impact is scale and economic sustainability, it has not
been possible to determine whether or not CBT initiatives contribute
more than the others.
Doxey’s irritation index
There are many studies that evaluates social impacts of tourism
to local community. Study of social impacts and issues regarding its
measurement has been studied since many years ago (Milman and
Pizam, 1988; Ap and Crompton, 1993; Deery et al., 2012). However,
Hall and Richards (2000) claimed that measuring the social and
cultural impacts of tourism is often a difficult task because firstly, they
are mostly indirect and secondly, the lack of accepted methodology
prevents exact measurement. On the other hand, Deery and Jago
(2010) claimed that the methods to collect and analyze data regarding
social impacts are often similar. However, there is something in
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common that most of the studies implies-- monitoring both positive and
negative indictors when at the same time measuring social impacts.
Butler (1975) came out with another stage of destination
development known as Product Life Cycle (PLC). PLC consists of
several stages beginning with exploration, involvement, development,
consolidation and finally, stagnation. Since Gili Trawangan is
considered as being in a new development stage, the study uses Doxey’s
Irridex Model in understanding residents’ attitudes toward tourism. It
should also be noted that attitudes do not predict support for tourism
development very well in the tourism communities. This is supported
by Andereck et all (2005) where they found that community benefits of
tourism perceived by residents have a direct and positive relationship to
support tourism development. However, the positive attitudes toward
tourism are not strongly related to additional development of tourism
products and the negative attitudes may not decrease residents’ desire
for development. In conclusion, there is a connection between attitudes
and support for development although relationship is different for each
community
Fig. 1. Doxey’s Irridex Model 1975
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Social Relationships Power Relationships

Euphoria Visitors & investors Little planning or formalized
welcome control
Apathy  Visitors taken for Marketing is the prime focus of
granted plans
 Formal relationships
between hosts &
guests
Annoyanc Residents misgivings Planners attempt to control by
e about tourism increasing infrastructure
Antagoni Irritations openly Power struggle between
sm expressed interests groups
Source: Doxey (1975)
Three Elements of Sustainability
The concept of sustainable development, which was the
foundation of three elements of sustainability in tourism was first
communicated by the WorldConservation Strategy of the International
Union for Conservation of Nature andNatural Resources (IUCN 1980).
Since then, the concept has developed from a seriesof international
meetings beginning with the United Nations World Commission
onEnvironment and Development (WCED).
Sustainable development in tourism has become a hot topic in
area of development research since the late 1980s, which has also been
discussed in tourism research. The problem arises as many researchers
discusses connection between host and guest may contribute to
negative impactin a certain destination. For example in Bali, there has
been an anxiety that tourism may lead to cultural destruction. Similar
phenomenon also happen in Komodo (Flores) where tourism may harm
the natural conservation of the Komodo dragons. These
concernareactually triggersthat take sustainable development as a
guideline to tourism development.
Kahn (1995) through the United Nations Agenda 21indicates
that the paradigm of ‘sustainable development’, in fact, rests on three
conceptual pillars. Originally were meant to counter environmental
issues, these pillars are then being develop to achieve sustainability in
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tourism destination. The three pillars consist of ‘economic

sustainability’, ‘social sustainability’, and ‘environmental
sustainability’ as shown on the diagram below
Fig. 2. Three Elements of Sustainability
Source: Kahn (1995)

1. Economic sustainability, in terms of growth, development, and
productivity, sustained levels of growth and consumption. A
sustainable economic growth will lead to ‘trickle down’ to the
poor, minimize leakage and at the same time create multiplier
effect.
2. Social sustainability encompasses notions of equity, cultural
identity,accessibility, empowerment, participation, and
institutional stability. This approach seeks to preserve the
destination through economic growth and reduction level of
poverty.
3. Environmental sustainability involves ecosystem integrity,
biodiversity and carrying capacity. It requires natural capital to
be preserved as a source of economic inputs and waste control.
Resources must be harvested no faster than they can be
restored. Waste management must be encourage to minimize
impacts of tourism.
The theoretical framework elaborated by Kahn suggests that the
three areas; economic, social and environmental ‘sustainability’ must
be ‘interlinked’. To achieve sustainability, each must be synchronized
in a comprehensive manner. A hypothetical case of deforestation in a
developing country as follow will illustrate this ‘interlinkage’ to
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describes how each aspect of the economic, the social, and the
environmental contributes ‘sustainability’ that relate to one another.
If a man in a rural area is jobless, he is likely to be poor and
potentially became unskilled. If he is poor and unskilled, he has an
incentive to engage in practices that harm ecology just to get “easy
money”, for example, by cutting down trees for firewood and to sell for
extra money. His actions will lead others within his community to
follow, hence more villagers will be cutting down trees. This will lead to
deforestation that may cause flood during the rainy season. Flood will
not only cause impoverishment, but may cause social impacts like
increased numbers of jobless which potentially lead to increasing
numbers of criminals.
Methodology
This paper is based upon fieldworkresearch that was conducted
in Gili Trawangan, Indonesia over two visits in June and July2018.A
multi-method research approach(Sommer and Sommer 1991) was
usedfor this study. In-depth, semi-structuredkey informant interviews
were conductedwith twenty seven business ownersand managers (local
and western) on theislandresulting in a 85 percent response rate.
Snowball sampling was also used to obtainthe key informant
sample. To enrich quality of this research, in depth interviewswere
conducted with the current local government and selected key person
who develop the island.Using a random sampling procedure, a total of
27 informal interviews were conducted. Interviews were also conducted
with employees and the local community on the island.
The interviews was to discuss history of sustainable
tourisminitiativeson the island, to identifybarriersto implementing
sustainabletourism, to foresee strategies that overcome the
identifiedbarriers and innovative means inGili Trawangan.
Findings and Discussion
A number of findings were documented in this research.Using
Doxey’s irritation index and the concept of three elements of
sustainability to compose the questionnaire, there are three results
outliningthe main impact of CBT in Gili Trawangan. Through this
research CBT initiativestowards economic impact were identified, these
threeresearch findings consist of:
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(1) Direct and indirect economic impacts

(2) Locals attempt to learn new skills
(3) Mass commercialization of tourism businesses within this
island.
direct and indirect economic impacts
Economic expediency is felt since tourism developed in this
island. Through interviews with thelocals who witnessed the island
growth since early 1980-ies, tourism has made major change to social
welfare. Not only for the creation of new jobs related to tourism,
businesses that are not directly related to this sector also get positive
benefits. For example, owner of building material is crowded because
there are construction of villas and improvements of roads
andinfrastructure. Farmers and fisherman from another island also
benefit from tourism though the needs of food to support the business.
Not only give major improvement to local income and standards of
living, tourism at the same time fosters numbers of public facilities.
This was against the long knownimage of West Nusa Tenggara (Nusa
Tenggara Barat (NTB)) as the poorest province in Indonesia.
As the bread and breath of Gili Trawangan, the positive impacts
of tourism leads consequently to a better standard of living for the local
residents. This is in agreement with studies concerning on the positive
economic impacts of tourism (Pitanatri, 2018, 2017; King et al., 1993;
Akis et al., 1996; Haralambopoulos & Pizam, 1996).
The result of questionnaire distribution shows that 87% of the
people in Gili Trawangan earn enough income to meet their basic needs
like food, health and education. Around 38% of them also have funds
allocated for investment. This shows the quality of life of the people on
this island is way better than without tourism.
Before tourism, local community used to rely solely on fishing.
Whenhigh tide season arrives, many people experience difficulties
because they cannot go fishing. "Before tourism, don’t think about
education, just for daily meals is very difficult" (Village Leader,
interview 2018). One of the reason is the existence of a cooperatives
belonging to local communities that helped improve community welfare
called Janur Indah.
As mentioned earlier, there is no motorized vehicle on this
island. One of the modes of transportation used is Cidomo (Cikar Dokar
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Mobil) which is only limited to 32 unit. The ownership of Cidomo

follows is managed by this local cooperative. Because it is managed by a
cooperative, the revenues from Cidomo exclusively owned by the local
community. The profits from Cidomo is divided into three, for horse
owners, drivers and membersof the cooperatives. Likewise, Dongol
(horse cart which is not dedicated for tourists), also gain economic
benefits from tourism.
However, local community of Gili Trawangan also faced the
negative side of economic impact.Such impacts especiallyincreased price
of goods and services, increased price of land and housing and increased
cost of living. These impacts also affected to many workers as they tend
to only work in Gili Trawangan, but lived on the neighboring island
like Gili Air and Lombok mainland. When this research was carried
out, several hotel employees who became informants in this study also
stated that in fact they were better off living on another island because
the cost of livingin Gili Trawangan was relatively more expensive.One
of the problems also lies in the need for basic commodities which are
almost entirely imported from other islands. The only thing produced
on this island is only coconut, and even then the amount is not much as
much because many fields have changed their designation for tourism.
Even so, the multiplier effect of tourism activities on Gili
Trawangan is also felt by those who do not live on this island. Suppliers
from outside the island and not directly involved as tourism players can
also enjoy the sweetness of tourist. Lombok's regional income also
increased dramatically, due to an increase in hotel and restaurant
taxes, recreational businesses and from fast boat ticket sales. This
allows local governments to carry out various activities related to the
development of destinations
Locals attempt to learn new skills
Especially for Indonesians, Lombok's once known as the land of
stealers. When villagers went "fishing" to the beach, they are not going
home with carrying fish but sunglasses and tourist possessions. This
created bad image of Lombok as tourist destinationnational and
internationally. To avoid this, the Gili community then began to
enforce social control by “shame stealers”by making them parade
around the island by using sign on their neck before being handed over
to the police. This were conducted to give a deterrent effect so Gili
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Trawangngan remains a safe and comfortable destination for tourists.

Their skill in stealing, were directed to learn skills in tourism.
Tourism "forces" these local people to learn new skills if they
want to feel the benefits from this sector. Thus, skills are actually
formed due to the development of the tourism sector in this island. Skill
of communicating with English, in diving and even skills as Disk
Jockeys (DJs) and bartenders who used to be taboo, became formed
with many clubs and bars on the island.
In supporting the improvement of skills and competencies
owned by the community, the local government has also invested in
development funds in the form of schools. On this island there are
schools from an early age to high school and vocational high school to
help improve skills and quality of local community in the destination.
Despite the enthusiasm from a numberof business owners on
the island, sustainable tourism initiatives also continuouslyfaced a
number of barriers. Thefirst theme identified was related to thebarriers
associated with inadequate resourcessuch as high costs, lack of
information,skills, knowledge, expertise, timeand the reluctance to
acquire assistancefrom other consultants. It was theseparticular
barriers that were identifiedas the most significant and often
experienced.
Mass commercialization of tourism businesses within this island
No doubt Gili Trawangan is "shining" after tourism. Nights that
usedto be dark in this un-inhabitant island, now filled with lights from
bars and restaurants that filled the streets. Even though the island is
still lack of street lighting, most places of the island is always bright
because many tourism businesses along the way.
To increase revenues, the road is also crowded due to
advertisement by business owners. Advertisement varied from small
businesses owned by the community to large ventures and
restaurants.Not only local advertising, there were quite a number of
promotions carried out both at the initiative of the community itself
and the local government in collaboration with the central government
to promote Gili Trawangan.
When referring back, this island is actually an uninhabited
island which was originally a place to plant coconut. A German traveler
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came and stayed for a few nights on this island in the early 1980-ies
and he wrote his experience in the form of articles. The article is then
published by guide book in Germany, and then re-published in some
guide books like Lonely Planet. After that, Bali was always associated
with Lombok where Lombok highlights were dominated by the features
of Gili Trawangan and two other Gili’s.
Although administratively a part of Lombok, Gili Trawangan
feels even closer to Bali. It does not feel that this island is also part of
halal tourism which is a big concept of Lombok tourism development.
The island of Lombok itself has won the award as 2015 Abu Dhabi
World Halal Destination. What's interesting is the statement from the
local community “if you want to do something crazy, do it in Gili; not in
Lombok”. This concludes how differences in tourism promotion are
carried out for Lombok with Gili Trawangan.What is interesting is the
terminology of local communities is actually not quite right because
there are actually no "authentic" communities of Gili Trawangan. They
are actually migrants from the island of Lombok who then settled for
years to get a more decent living.
When referring to Doxey's Iridex theory, this phenomenon
shows that Gili Trawangan is currently in the position of apathy where
tourism is growing rapidly due to the massive promotion promoted on
the island. On the one hand, the relationships that occur between hosts
and guests are still warm. Although currently the number of tourist
visits to Gili Trawangan is increasing, the collaboration actually
appears between hosts and guests. There are quite a number of
initiatives emerging from Gili youth such as GarbageHeroes, beach
clean days every weekend, and many more. This also encourages
promotion carried out on Gili Trawangan.
This situation is also supported by the development of the
digital world as a result of technological progress. Research conducted
by Pitana and Pitanatri (2016) mentions that through the move from
offline to online travelers, the web and social media presence of
destinations are crucial as e-destinations serving as platforms where
potential travelers can be inspired, get all the information about their
upcoming trip to a destination and eventually book the holiday.
Examples that occur in Bali, quite a lot of destinations that were never
touched but later became popular due to social media. Nusa Penida, for
example is a religious tourism for Balinese destination as it has one of
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the most sacred temples in Bali which then becomes one of the "hot
spots" to take selfies to travelers. New terminology like Instagramable,
YouTuber, Vloggers and so forth also arises in once not so popular
destinations.
Closing
Tourism does not always have a completely negative impact. As
in Gili, tourism has proven to have a positive impact on local welfare.
The purpose of this article was to investigate on the stages of
development in tourism economic impact assessment. In order to reach
the aim of this study, a comprehensive review on the most important
models and approaches about social impacts of tourism and their
evaluation has been applied. Based on the literature as well as the
questionnaire and interviews conducted, it was determined that
tourism has contribute positive economicimpacts on the community as
perceived by its members.
Therefore, it is very important to adopt the planning policies
which can reinforce other positive impacts while reduce negative
impacts by involvement of communities in tourism industry. This will
result in further understanding of residents about tourism and their
participation in tourism decision making which will consequently lead
them to receive more benefits from the industry. These policies will let
local people to be involved in the industry in a positive way and
undertake both positive and negative impacts of tourism.
Hence, sustainable tourism development must take scientific
evaluation plan which favors a comprehensive mastery of development
performance indicators. There’s also need in correcting deviations from
traditional performance, avoiding blind promotion and inefficient
development, strengthening industry management, protecting natural
and cultural resources, while at the same time to improve management
efficiency, achieving social equity, and ultimately promoting
sustainable tourism development
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ADOLESCENT BEHAVIOUR
A REVIEW UNDER FREUDIAN CONCEPT
Sataprasuna Gayen Tuhin Kumar Samanta

Research Scholar Professor
Department of Education Department of Education
The University of Burdwan, The University of Burdwan,
Golapbag Burdwan , India Golapbag Burdwan , India
Abstract
Young people in their teens constitute the largest age group
in the world, in a special stage recognized across the globe as the link in
the life cycle between childhood and adulthood. The physical and
psychosocial changes that occur during puberty make manifest
generational and early-childhood risks to development, in the form of
individual differences in aspects such as growth, educational
attainment, self-esteem, peer influences, and closeness to family. They
also include experiences, more common in this age group than in
others, that are capable of substantially altering life trajectories:
nonconsensual sex, alcohol and drug abuse, self-harm and interpersonal
violence, and getting into trouble with the law.
Sigmund Freud was founding of the school of psychoanalysis, a method
for treating mental illness and also a theory which explains human
behavior. A normal development can be the cause of many mental
diseases and illness. Sexual adjustment during adolescence is very
important because in this period physical and psychological
developments are occurring. For this life style education is desirable.
The extent to which a normal personality can develop in some
particular culture depends upon the extent to which normal expression
to human tendencies is permitted in its environment. The Freudian
analysis prompted the present investigator to undertake this
investigation with a view to find out whether Freudian symbolism
behavior theory holds true in case of our adolescent school children.
Key Words: Psychoanalysis Theory, Adolescent Behaviour, Symbolism
Theory
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Introduction
Psychologist use the term “personality” to refer to the features
of our psyche that make each and every one of us psychologically
unique. One of the first personality theorists was Sigmund Freud.
Freud is the best known figure ever to emerge from psychology, and his
theory of personality development had has a major impact on society
and the way we think.
Adolescence is transitional phase of growth and development
between childhood and adulthood involving multiple physical,
intellectual, personality, and social developmental changes. The World
Health Organization (WHO) defines an adolescent as any person
between ages 10 and 19. This age range falls within WHO’s definition
of young people, which refers to individuals between ages 10 and 24.
Adolescents in India, constituting more than one-fifth of the total
population, are living in a new age and growing under the multiple
influences of family, school, market, and media. In particular, the
adolescent lives in urban and metro areas are being shaped by
influences of consumerism and market forces, and the ideology of
individualism. It can easily be gauged that the plethora of choices
offered by persuasive media interfere with the life course and seize the
young minds. In addition some micro-changes such as mother’s
employment, rising parental aspirations, and soaring availability of
unhealthy items in market are leading to pervasive alterations in diet,
sleep and leisure time activities. Use of labour-saving devices, quicker
transport and various electronic gadgets are promoting sedentary mode
of living that drastically curtail the scope of physical activity and
exercise. Also, there are reports about increased involvement of
adolescents with risk behaviours such as early sexual activity,
unprotected sex, substance abuse, suicidal attempts and violence.
From the earliest days of psychology Sigmund Freud used
symbols to try to understand mental disorders. Freud’s most commonly
known use of symbolism might be his methods of dream analysis. He
called dreams “the royal road to the subconscious”, and felt that the
biggest function of dreams was to show us our underlying wishes. While
there is what Freud called ‘manifest content’, which really is just the
mind rehashing the events of the day, the strange symbolic parts of
dreams are the ‘latent content’, our minds trying to show us our
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forbidden wishes. For example, a dream of watching a giraffe eat the

leaves of the highest trees might be about wanting to be a bigger, more
ambitious person. Despite people connecting dream dictionaries to
Freud, he actually hated them and was very cautious about using
universal symbols, such as saying water always represents emotions.
He believed it’s best to know someone before analyzing their dreams as
symbology tends to be personal. Psychoanalytical psychotherapy is the
form of modern therapy whose roots are in Freudian theory.
Objectives of the Study
1. To study the adolescence period lifestyle.
2. To study the fantasy, dream, imagination, perception etc during
transitional period.
3. To study the concept of Freudian theory and its application on
practical life based on psychoanalysis, Id, Ego, Superego.
4. To study the concept of Freudian behavioural theory and its
implication on practical life.
5. To study viability of Freudian theory in present time at Higher
Secondary level.
Hypothesis of the Study
H01: There is no significant difference between boys preferring male
symbols and boys preferring female symbols.
H02: There is no significant difference between girls preferring male
symbols and girls preferring female symbols.
H03: There is no significant difference between choice of opposite sex
symbols among boys and girls.
H04: There is no significant difference between choice of same sex
symbols among boys and girls.
Delimitation of the Study
The problem has been delimited under following categories:
 The present study did not cover entire adolescents.
 The study is studied only on eight school student behavior.
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 The study is delimited to the adolescent behavior of students of

class XI and XII.
Methodology of the Study
In this present study has tried to select various objects
involved in various activities in daily life. A number of these identical
symbols have been referred to by Freud in his psychoanalysis of
dreams. 15 such sets were prepared with symbolic objects representing
the male-female components. The study will be conducted on a sample
of 100 boys and 100 girls of 16-18 years of age studying in class XI and
XII of eight schools in Burdwan district. For the study four boys’
schools and four girls’ schools will have been randomly selected. 30
students will have been randomly selected from each school.
A questionnaire was prepared which consists of drawing of
various objects representing symbols. In each of the 15 sets of items,
there were drawing of 2 male symbols and 2 female symbols linearly
arranged in various orders. The questionnaires will be presented before
the students and they are asked to put a tick mark against only one
single answer which se/she prefers most in each of 15 sets. The
obtained data was analyzed statistically through testing of the
following hypotheses.
The reliability of the tool was established through a Split-
Half method. A reliability co-efficient of 0.564 was established through
Spearman-Brown Prophecy Formula.
TABLE NO – 1: There are 15 set of male symbols and female symbols
with different objects.
Serial set objects

number
1 ornaments Pointed pendent, Bangle, ring
arrow shaped ear
ring
2 Games Hockey stick, Basket
cricket bat
3 Sports Javelin, arrow Discuss, shot-put
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4 Vegetables Ladies finger, Cabbage, bottle gourd

ribbed gourd
5 Fruits Banana, Apple, orange
cucumber
6 Vessels Mast of ships, oar Life boat, country
boat7
Lamps Candle stick Electric bulb,
(lighted), burning lamp(pradeep)
torch (mashal)
8 Various Elongated, Circular, oval
geometric pointed
figure
9 Arms and Dagger, revolver Round
weapons shield(dhal),hand
grenade
10 Crockery, Spoon, fork Cup, jug
cutlery
11 constructions Plain brick house, Dome shaped house,
light house house with steeple
12 animals Snake, eel fish Snail, jelly fish
13 medicine capsule Tablet
14 Study material pen Oval paper weight
15 instrument Dram stick, flute Tanpura, sarod
DESIGN OF THE STUDY:

The whole research work is properly designed by with due
care, constructed and for such construction the management tools
namely effective planning, effective organizing, clear cut
communication and timely consideration have been used through the
research period.
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Flow chat of the design of the study

Survey method was adopted in the study
Adaption of sample technique ---- Random

adolescent boys and girls (16-18 years of age studying in class
XI and XII)
Selection and preparation of tool (questionnaire)
Administration of tools ( Direct contact)
Data analysis
ANALYSIS AND INTERPRETATION OF DATA:

The obtained data is represented in the following table:
TABLE NO – 2: Preference of male symbols and female symbols by
boys and girls.
Item Number of boys preferring Number of girls preferring

number the symbol the symbol
male female male female

symbol symbol symbol symbol
1 11 89 95 5
2 07 93 85 15
3 10 90 86 14
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4 23 77 76 24
5 18 82 92 08
6 14 86 83 17
7 06 94 88 12
8 22 78 90 10
9 31 67 78 22
10 08 92 86 14
11 19 81 93 07
12 03 97 81 19
13 10 90 93 7
14 4 96 95 5
15 7 93 88 12
Hyphothesis 1:
There is no significant difference between boys preferring male symbols
and boys preferring female symbols.
Number of boys preferring male symbols and female symbols
are shown in the following bar diagram (1).
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DIAGRAM- 1
Boys preferring same and opposite symbols

120
100
80
Number of
Number of boys
60 boys preferring
male symbol
40 Number of
boys preferring
20 female symbol
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Item number
Percentage of boys preferring male symbols and female

symbols are shown in the following bar diagram (2).
DIAGRAM- 2
Percentage of boys preferring same and

opposite symbols
13.66%
percentageof boys
preferring femal
symbols
86.33%
From the above data and its graphical presentation, it is found that
13.66% of boys prefer male symbols (same sex symbol) and 86.33%
boys prefer female symbols (opposite sex symbol). Thus, it can be said
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that boys have a natural tendency of preferring female symbols more

than male symbols i.e. a significant difference exists between boys
preferring male symbols and boys preferring female symbols. So the
hypothesis, There is no significant difference between boys preferring
male symbols and boys preferring female symbols is rejected.
Hyphothesis 2:
There is no significant difference between girls preferring male symbols
and girls preferring female symbols.
Number of girls preferring male symbols and female symbols
DIAGRAM-3
100 Girls preferring same and opposite symbol

80
Number of Girls
60 Number
of girls
40 preferring
20 male
symbol
0
1 2 3 4 Item
5 6 number
7 8 9 10 11 12 13 14 15
Percentage of girls preferring male symbols and female

symbols are shown in the following bar diagram (4).
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DIAGRAM-4
percentage of girls preferring same and opposite

symbols
12.75% percentage of
girls preferring
female
symbols
87.25% percentageof
girls preferring
female
symbols
From the above data and its graphical presentation, it is found that
87.25% of girls prefer male symbols (opposite sex symbol) and 12.75%
girls prefer female symbols (same sex symbol). Thus, it can be said that
girls have a natural tendency of preferring male symbols more than
female symbols i.e. a significant difference exists between girls
preferring male symbols and girls preferring female symbols. So the
hypothesis, There is no significant difference between girls preferring
male symbols and girls preferring female symbols is rejected.
Hyphothesis 3:
There is no significant difference between choice of opposite sex symbols
among boys and girls.
Number of boys and girls preferring opposite sex symbols are
shown in the following bar diagram (5).
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DIAGRAM-5
Preferrence of opposite sex symbol by boys and

120 girls
100
80
number of boys and girls
60 number
of boys
40 preferri
ng
20
female
0 symbol
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Item number
Percentage of boys and girls preferring opposite sex symbols

DIAGRAM-6
Percentage of preference ofopposite sex symbol

by boys and girls
86.33% percentage of boys

87.25% preferring female symbols
From the above data and its graphical presentation it is found that the
opposite sex symbol is preferred by 86.33% boys and 87.25% girls.
Thus almost no significant difference exists between choice of opposite
sex symbols among boys and girls. Hence, the hypothesis, There is no
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significant difference between choice of opposite sex symbols among

boys and girls is accepted.
Hyphothesis 4:
There is no significant difference between choice of same sex symbols
among boys and girls.
Number of boys and girls preferring same sex symbols are
DIAGRAM-7
Preference of same sex symbols by boys and

35 girls
30
25
number of boys and girls
20 number of
15 boys
preferring
10 male symbol
5
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Item number
Percentage of boys and girls preferring same sex symbols are

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DIAGRAM-8
percentage of preferrence of same sex symbols by boys

and girls
12.75% percentage of boys

13.66% preferring male symbols
percentage of gorls
preferring female symbols
From the above data and its graphical presentation, it is found that the
same sex symbol is preferred by only 13.66% boys and 12.75% girls.
Thus almost no significant difference exists between choice of same sex
symbols among boys and girls. Hence, the hypothesis, There is no
significant difference between choice of same sex symbols among boys
and girls is accepted. MAJOR FINDINGS OF THE STUDY:
Though symbolism theory is widely recognized, many
practical symbolic investigation have reported that students encounter
great difficulties in comprehending the theoretical concepts and related
principles of Biology with theories of ideas. The entire samples of boys
as well as girls reveal significant differences in their preferences of
particular sex symbols. It is found that preference of opposite sex
symbols by boys and girls prefer are highly significant. Boys prefer
female symbols and girls prefer male symbols which follows the
Freudian symbolism theory.
The present study is thus conducted by the investigator to
study the effectiveness of Freudian symbolism theory through analysis
of boys and girls preferences of same and opposite sex symbols. This
kind of study also reflects a person’s attitude towards sexual
development, which is an important component of human personality.
Psychoanalytic thought has grown in many directions. But
Freud’s rigidity in emphasizing the role of biological forces (i.e. the
libidinal energies) in determining behavior is considered as orthodox.
According to neo-Freudian thoughts socio-cultural forces is also an
important determinant of behavior.
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DISCUSSION OF THE RESULT:

The present findings highly agree with the findings of
McElroy’s(1954) and Jahoda (1956). According to Langer, “the human
brain is constantly carrying on a process of symbolic transformation of
experiential comes to it”. Eliade(1970) explained “symbol as
unconsciously produced substitute”. According to Todorov (1980),
“symbol is a kind of sign and symbols are vehicles of indirect
expressions”.
CONCLUSION:
In school curriculum usually there is no place for adolescence
psychoanalysis. Now a day due to globalization the study of adolescence
behavior is very important. Child crime is usually increasing all over
the World, due to bad effect of multimedia. Usually commercial
channels are very much interested in money earning instead of
character building. Govt. of India published life style education for
education for adolescence in the year of 2004. But unfortunately this
notable work is not accepted by various states so that, they are
interested in vote bank due to religious beliefs, communal activity etc.
Adolescence is the future back-bone of the nation. So they should be
nourished properly in all respects e.g. study-habit, concept of peace-
education, concept of value-education, concept of humanity and
morality.Swami Vivekananda is the towering personality in education
and his opinion was that adolescents are provided top priority in any
education system because they are the raw materials for molding future
exclusive citizen.
References
1. Arminjon .M. (2011). The four postulates of Freudian
unconscious neurocognitive convergences. Retrieved April 25
2017 from
http://journal.frontiersin.org/article/10.3389/fpsyg.2011.00125/fu
ll
2. Boundless. (2016). According to Freud's psychoanalytic theory,
personality develops through a series of stages, each
characterized by a certain internal psychological conflict.
Retrieved April 14 2017 from
https://www.boundless.com/psychology/textbooks/boundless-
psychology textbook/personality-16/psychodynamic-perspectives-
www.ijmer.in 250
on-personality-77/freudian-psychoanalytic-theory-of-personality-
304-12839/
3. Eysenck. H. J. and soueif. M. (1972). An empirical test of the
theory of sexual symbolism. The experimental study of Freudian
theories (Ed. H.J. butcher, chapter14, P.N. 236-240). London,
Methuen.
4. Hall.C.S. (1953) . A Cognitive Theory of Dream Symbols.
Retrieved April 25 2017 from
http://www2.ucsc.edu/dreams/Library/hall_1953.html
5. Jahoda. G. (1956). Sex Differences in Preferences for Shapes- a
Cross Cultural Replications. British Journal of Psychology.
6. Journal Psyche (2015). Is Freud’s Personality Theory Still
Relevant? Retrieved April 25 2017 from
http://journalpsyche.org/is-freud-still-relevant-today/
7. Petocz. A. & Freud (October 2009). Psychoanalysis and
Symbolism. ISBN9780521021500.
8. Roy. U. & Chakraborty. S. (2016). A Psycho philosophical
Interface concerning the voice of conscience in the light of
Kant and Freud. Retrieved April 25 2017 from
http://www.jrpbs.com/latest-artivles.php?at_id=23
www.ijmer.in 251
TEXTBOOK DEVELOPMENT BASED ON ROLE PLAYING

IN JOB TRAINING INSTITUTION ON HOSPITALITY
Ni Nyoman Nidya Trianingrum1, Edy Moeldjadi2, Sulistyoadi

Jokosaharjo3
Sekolah Tinggi Pariwisata Triatma Jaya
Bali, Indonesia
Abstract
This research and development study aimed at (i) explaining the
procedure of development of textbooks based on role playing for
English for Housekeeping Subject, (ii) describing the development of
textbooks based on role playing that is produced for English for
Housekeeping Subject, (iii) analyzing the qualities of the development
of textbooks based on role playing for English for Housekeeping
Subject. This study was designed based on Sugiyono’s model of research
and development. The result of problem identification showed that the
materials used were limited in term of giving students the opportunity
to speak English. The results were responded by the teacher and
students in each Job Training Institution in Badung Regency. To
improve the teaching and learning quality that consequently results in
better achievement. The material development was judged by the
expert judges. The expert judges of the develop material showed that
the material were in category of excellent. In addition, the tried out of
the material indicate the good quality of the material which was proven
by the improvement of the mean score from six Job Training
Institution in KabupatenBadung. The main score of Mapindo Job
Training Institute was 69, 6 increased into 73.3, the Swantantra School
Hotel Job Training Institute was 69, 6 increased into 74,6,
DhyanaPuraJob Training Institute was 69,4 increased into 75,6,
Fransisco IHEC Job Training Institute WAS 69,9 increased into 74,
PrshantiNilayam Job Training Institute was 70,1 increased into 79,4,
Monarch Job Training Institute was 68,7 increased into 79,2 after the
development of textbooks based on role playing for English for
Housekeeping Subject was used.
Keyword: Development, Textbook, Roleplaying
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Introduction
Tourism in Bali according to data from the Central Bureau of
Statistics of the Province of Bali has increased by 8% every year. This is
due to the large number of tourists visiting Bali for vacation or
investment. With the occurrence of this phenomenon has a positive
impact on the economic sector of tourism in Bali. This will not work
well if it is not supported by professional human resources who have
quality skills. Therefore, Job Training Institutions in the hospitality
sector began to emerge. Based on this, it is needed teaching staff at Job
Training Institutions that can provide learning in accordance with
standards in the field of tourism. To be able to provide appropriate
learning and understanding, the learning process must be applied
appropriately.
The learning process is an effort that conducted by teachers and
students in sharing and processing information with the aim of
obtaining benefits in terms of knowledge and being able to make it as a
base for sustainable learning. This will lead to changes in a better
direction, in order to achieve an increase that is characterized by
positive changes in individual behavior in order to create an effective
teaching and learning process. Jogiyanto (2007: 12) also argues that
learning can be defined as a process in which an activity originates or
changes through the reaction of a situation faced and the
characteristics of the change in activity cannot be explained based on
the original reaction trends, maturity or temporary changes.
Many things that teachers can do to encourage learning. This
can be in the form of knowledge, experience, and explanation of how
learning is needed based on daily needs. Besides that, as for the
learning resources used by the lecturer to create learning processes
that are able to achieve the learning objectives itself, one of them is by
using textbooks.
The impact of the use of textbooks, provides convenience for
teachers in the learning process, such as: textbooks can provide a
source of expressional skills that are arranged in stages and neatly;
Textbooks also provide a source of many issues, textbooks are also easy
to read and vary according to the interests and needs of students, as a
basis for suggested activity programs where expressional skills are
acquired in conditions that resemble real life. According to data from
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Department of Manpower and Energy Mineral Resources Bali province

there are 17 accredited Job Training Institutions in the Hospitality
Sector in Badung Regency. From the 17 Job Training Institutions,
there are 6 Hospitality Job Training Institutions that have a
Housekeeping Department in Badung Regency. Some of the Job
Training Institutions already have textbooks but it is known that most
of the books have not met the needs of participants in the JobTraining
Institution. On the other hand, among those training institutions, there
are those who do not have English for housekeeping textbooks. Most
lecturers or lecturers apply or provide learning about English for
Housekeeping based on experience in the industry and only through
lectures. This condition is certainly detrimental to students because
without the availability of textbooks, it is difficult for students to repeat
lessons or learn new material. This certainly can be avoided if students
are provided with references or accurate reference material. Learning
without teaching materials also results in limitations for students to
study independently in accordance with the curriculum applied by the
Job Training Institute itself.
The increasing number of training institutions in the field of
hospitality, naturally makes the instructors or lecturers aware that
textbooks are one of the most important materials in the learning
process. But on the other hand, it is known that the lack of
communication skills using English especially in the field of hospitality
is also a big obstacle, considering the world of hospitality requires
individuals involved in it to be able to take an active role so as to
improve living standards. This Conditions will certainly have a bad
impact toward students, if a solution is not immediately found. One
alternative that might be used as a solution in order to create an
attractive learning atmosphere, and provide opportunities for students
to get involved, and be able to make students study independently so
that it strengthens the reasons for developing role paying based
textbooks in English for housekeeping courses.
The development of textbooks based on role playing as a way to
put students into real situations because it is considered to provide
many benefits to the students in job training institute. The role playing
method is a way of mastering learning materials through developing
students' imagination and appreciation (Hamdani, 20011: 87). The
development of imagination and appreciation is done by acting as a
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living figure or inanimate object. The role playing method involves

many students so that they have added value such as, guaranteeing all
students to participate in each activity and provide opportunities for
students in working together to show the abilities until succeed. Based
on the background above, the objectives of this study are:
1. To explain the procedures for textbook development based
on role playing for English for Housekeeping subject
2. To describe textbook development based on role playing that
is produced for English for Housekeeping subject
3. To analyze the quality of textbook development based on
role playing for English for Housekeeping subject
This research is expected to be able to improve the ability of students in
the hospitality department at job training institute in Badung Regency.
In addition, the results of this study are expected to contribute to
lecturers and students in terms of both theoretical and practical.
a. Theoretically, this research is expected to be a source of
information related to the development of textbooks based on
role playing. This research is also expected to be a source for
designing textbooks at Job Training Institute in Badung
Regency, in addition, this research can be used as a source to
decide how to improve the ability of students in English
Grammar.
b. Practically, this research helps students to get fun activities in
the classroom, encourages students 'English skills and solve
students' fears while expressing statements in English. In
addition, the development of this textbook helps students to
work in a team. Through this development students are actively
involved in the learning process. The development of textbooks
based on role playing can help lecturers to avoid monotonous
classroom situations. Through this research the lecturers can
improve their knowledge and ability in teaching quality.
THEORETICAL REVIEW
Development Theory
According to the Law of the Republic of Indonesia Number 18 in
2002, development is an activity of science and technology that aims to
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utilize the proven principles and theories of science to improve the

functions, benefits, and applications of existing science and technology,
or produce new technologies. Development in general means growth
patterns, changes slowly and change gradually.
Essentially, development is an educational effort both formal
and non-formal, which is carried out consciously, planning, directed,
organized, and responsible, in order to introduce, grow, guide, develop a
balanced personality base,
intact,and in harmony according to talent,desires and abilities, as
provisions on their own initiative to increase, improve, develop
themselves towards the attainment of optimal dignity, quality and
human capabilities and independent individuals (Wiryokusumo, 2011).
From the opinions of the experts above it can be concluded that
development is an effort that is carried out consciously, planned,
directed to make or improve. Thus, it becomes a product that is
increasingly useful to improve quality as an effort to create better
quality.
Textbook
Textbooks are guidebooks for students in learning activities that
contain subject matter, inquiry activities based on concepts, science
activities, information and examples of the application of science in
daily life (Trianto, 2011: 227). Muslich (2010: 37) defines textbooks as a
books that contain a description of material about a particular subject
or field of study, which is arranged systematically and has been selected
based on specific objectives, learning orientation and student
development, to be assimilated.
Based on several definitions of textbooks above, it can be
concluded that textbooks are papers in the form of a book in a
particular field, which is used by the teacher / lecturer and students in
teaching and learningprocess for instructional purposes and objectives,
and equipped with teaching facilities that appropriate and easy to
understand by students and educational institutions so that they can
support learning programs.
Role Playing
Kartini (2007) stated that the method of role playing is a
method used to imitate the way someone behaves in a drama. Emphasis
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on behavior on role playing methods

closely related to social relations. Santoso (2010) states that the role
playing method utilizes the effect of movement (kinesthetic), it is
caused by the subject being asked to perform a particular role. The
function of this method is to develop interpersonal skills or the ability
of individuals to interact with others.
Based on this opinion it can be seen that the method of role
playing asks the subject to play a particular role, through an
interaction with his social environment.
Housekeeping
Housekeeping Department is the part that handles and is
responsible for cleanliness issues, and the overall comfort of the hotel
both inside and outside the hotel (Murdana, 2012: 70). According to
Sulastyono (2007) it is stated that housekeeping is part of a hotel that
is functioned and given responsibility starting from materials made of
fabric, maintaining cleanliness and tidiness of the room as well as
procuring the completeness of the room, and maintaining the entire
hotel room. The convenience of guests staying at a hotel is supported by
housekeeping services in providing services both in cleanliness and
speech acts of polite housekeeper to guests.
Characteristics of Learner
According to Sunhaji (2013: 5) adult learners have the following
characteristics:
1. Learning leads more to a maturation process, a person will
change from being dependent towards having the ability to
direct themselves, and requires self-direction even though in
certain circumstances they are dependent.
2. The main principle is to gain self-understanding and maturity to
be able to survive, the more mainstream learning uses
experimentation, discussion, problem solving, training,
simulation and field practice.
3. Adults will be ready to learn if the training material according
to what the students feels is very important in solving life
problems, so that learning programs are arranged according to
the needs of their real lives and the order of presentation must
be adjusted to the readiness of students
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4. Ability development is oriented towards learning centrally in its

activities
Job Training Institutions
Law Number 13 of 2003 Chapter V is an understanding of job
training as written in Article 1 number 9 of the Manpower Act is the
whole activity to give, obtain, improve, and develop work competencies,
productivity, discipline, attitude and work ethic at the level certain
skills and expertise in accordance with the level and qualifications of
the position or occupation. The aim of a Job Training Institution is to
create a quality workforce that will bring prosperity to the workers
themselves.
METHODOLOGY
This research was conducted at the Hospitality Job Training
Institute accredited which has a Housekeeping vocational program in
Badung Regency that is registered at the Manpower Office and Energy
Mineral Resources in Baliprovince. The following job training
institutions in the hospitality sector are presented in the following
table:
Table 1.1 Name of accredited Job Training Institutions at
Hospitality in Badung Regency, Bali
NO NAME ADDRESS VOCATIONAL

PROGRAM
1. Mapindo KubuGunung a. Food Product
Street, Tegal Jaya, b. Food Service
DalungKuta c. Housekeeping
d. Front Office
2. Swatantra School Badung Housekeeping
Hotel
3. PPLP DhyanaPura Raya Padang a. Food Product

Luwih Street, b. Food Service
Tegal Jaya Badung c. Housekeeping
d. Front Office
4. Fransisco-IHEC Jl. Raya Abianbase Tata Graha
No. 127
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NO NAME ADDRESS VOCATIONAL

PROGRAM
MengwiBadung
5. LP3 KubuAnyar Street a. Food Product
PrshantiNilayam No. 21 b. Food Service
KutaBadung c. Housekeeping
6. MONARCH Pandu Street No. a. Food Product

DALUNG 27, Dalung b. Food Service
c. Housekeeping
Source: Manpowerand Energy Mineral Resources of Bali Province,

2017
The Alteration Observed
The alteration that will be observed in this study are:
1. Textbooks in English for Housekeeping subject that are owned
by Job Training Institutions in Hospitality in Bali that will be
used as guidelines as textbook development based on role
playing. In these observations, the researcher will focus on
several aspects of the existing book such as: relevance with the
development and needs of students, graphic components, the
nature of science, practical considerations, and objectives.
2. Indicators that already exist in the book used such as: material,
characteristics of adult students, supporting presentation,
adequacy and depth of material, topics, activities, and tasksin
the book used
Technique of Data Collection
Data collection used in this study are:
a. Observation the implementation of observations in this study
was to find out the actual conditions and to collect data
regarding the use of textbooks in English for Housekeeping
subject
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b. Documentation: this method is conducted to collect data related

to learning preparation and various policies based on learning
outcomes in English for Housekeeping subject
c. Questionnaire: the questionnaire was used in this study by
giving a list of questions to English for Housekeeping lecturers
and Housekeeping students. The questionnaire is distributed in
the form of a written statement regarding aspects and indicators
of English for Housekeeping textbooks
Data Analysis
Data analysis used in this study are qualitative data. Data obtained
after further product testing will be analyzed quantitatively, then
analyzed using the following formula:
Table 1.2 Average Formula
Score Criteria
X ≥Mi + 1.5Sdi Excellent
Mi + 0.5Sdi ≤ X <Mi + 1.5Sdi Good
Mi - 0.5Sdi ≤ X <Mi + 0.5Sdi Average
Mi - 1.5Sdi ≤ X <Mi - 0.5Sdi Below Average
X <Mi - 1.5Sdi Poor

(Sudjiono, 2011)
Discussion
Result of the Research
a. Procedure of textbook development based on Role Playing inEnglish
for Housekeeping subject
1. Problem identification is the first step in the process of
designing instructional materials based on role playing. First,
the researcher analyzes the teaching materials used. Teaching
materials are observed using the instruments provided. From
observations made by researchers, it is known that the material
or teaching material used has several disadvantages such as:
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lack of exercises in the teaching material, especially the ability

to speak, the material provided has not helped students to be
motivated, and the material presented in the book does not meet
needs of students who do not provide a variety of activities
related to the characteristics of adult students. This is a very
important in developing teaching materials that can attract
students' interest.
2. Data Collection
English is the main content in the world of hospitality that
makes writers to develop teaching materials that can motivate
students to learn English, so they can socialize with foreign
tourists. Researchers designed the instruments when collecting
data to examine existing books or teaching materials. The
instrument in the form of a questionnaire was designed based
on good material that adopted from theories of Tomlinson,
Cunningsworth, and BNSP. Observations of teaching materials
used were conducted in 6 Job Training Institutions in Badung
Regency, such as: Mapindo, Swantara School Hotel, PPLP
DhyanaPura, Francisco-IHEC, LP3 PrshantiNilayam, and
Monarch Dalung. After observing the textbooks used, the next
step is to observe the teaching and learning process in class.
Based on observations made it was found that the lack of
variation and exercises in the teaching material. The following
are the results of questionnaires from subject lecturers and
students in each Job Training Institution in Badung Regency.
1. The results of the questionnaire from the lecturers on the
previous textbooks
Tabel 1.3 The results of the questionnaire from six Job Training
Institution in Badung Regency
No Name Result
Yes % No %
1. Mapindo 37 64% 21 36%
2. Swatantra School Hotel 35 60% 23 40%
3. PPLP DhyanaPura 39 67% 19 33%
4. Fransisco-IHEC 36 62% 22 38%
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5. LP3 PrshantiNilayam 33 56% 25 44%

6. MONARCH DALUNG 34 59% 24 41%
The analysis was conducted using the following formula:

Score =
100%
From these results it is known that there are several statements

that are not approved by the lecturers regarding the textbooks
that have been used in each Jon Training Institution in Badung
Regency, so that there are some things that need to get serious
attention for researchers.
2. The results of the questionnaire from students
Table 1.4 The Result of Questionnaire from students in each Job
Training Institution in Badung Regency
Total Hasil
N
Nama LPK JumlahSiswadalamsatuk Tida
o Ya % %
elas k
1. Mapindo 35 70 71 280 29
0 % %
2. Swatantra 30 75 89 90 11
School Hotel 0 % %
3. PPLP 32 75 84 146 16
DhyanaPura 0 % %
4. Fransisco- 28 60 77 179 23
IHEC 5 % %
5. LP3 25 60 86 100 14
PrshantiNilay 0 % %
am
6. MONARCH 38 90 80 220 20
DALUNG 0 % %
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From the table above, it is known that the opinions of

students on the books used previously have several
weaknesses. Because of this, textbook development based on
role playing is designed with some characteristics such as:
1. The book must be relevance toward the character of the
adult student
2. The material contains activities that correspond to
events in the housekeeping department
3. The material contains many activities to speak
4. Activities presented in the book are able to stimulate
students to practice and learn
3. Product Design
Topics on textbooks based on role playing are based on
identifying existing problems through data collected and
based on SKKNI standards. The topics include:
Table 1.5 Unit-Unit in the textbook development based on Role Playing
Unit Topic
I. Terminology of Facility, Cleaning Equipment, and
How It is Used
II. Public Area
III. Room Section
IV. Facility and Equipment in the Room
V. Handling Guest Request through the Phone
VI. Housekeeping Service
VII. Laundry
VIII. Giving Direction
IX. Giving Information about Tourism
X. Handling Complaint
XI. Housekeeping Relationships among other
Department
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4. Design validation
At this stage, expert judges filled questionnaire to examine
and revise the contents of textbook development based on
role playing. From the results of the questionnaire, it was
found that the material designed and developed for adult
students as well as needs were in accordance with SKKNI
standards.
5. Design revision
Suggestions and criticisms from several lecturers and
students through questionnaires that have been
disseminated become a reference for researchers in revising
the design of this product. There were some revision that
must be corrected, such as: revision toward grammar and
Revision toward the picture provided. Clear images can
attract students to read and study books.
6. Product Field Test
After learning the teaching materials that will be used to
develop textbooks based on role playing, it is designed and
validated, then the textbooks are tested. From the trial of
the product, the researcher collected the results of the
questionnaire that had been distributed to students and
lecturers. The results of the next questionnaire were
developed according to the criteria of good textbooks
according to Cunningsworth, Tomlinson and BSNP. In the
questionnaire there were 58 statement items for lecturers,
and 28 statement for students.
7. Product Revision
After conducting the product field test, the researcher made
a revision to produce the final product before being tested
again.
8. Prototype
A prototype was the final textbook development which had
been tested, since it was just tested in limited field tested.
b. Describe textbook development based on role playing that is
produced in English for Housekeeping subject
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The textbooks based on role playing that have been developed have
been revised based on the results and entries of the questionnaires
that have been distributed to lecturers and students in the Job
Training Institute in Badung Regency. The form of the contents of
the book produced is expected to consist of several units, such as:
1. The book contains the front cover and back cover. The cover is
not only as an announcement about the title of the book, but
also contains the contents of the book or an overview of the
contents in the book related to the topics discussed in the book.
In this section, it is expected that the book can convey a little
picture and the style that is in the contents of the book. This is
important because the section involves readers and researcher
to inform whether this book is what the reader is looking for or
not.
2. Textbook development based on role playing contain of preface
or introduction. Introduction is a cover that tells about how the
book was produced or how the book was developed or explained,
thus, the book has better value for the reader.
3. Textbook development based on role playing contain of table of
contents. The units discussed in the book are written in
contents list which can help the reader to find the topic that the
reader wants to find.
4. Textbook development based on role playing contain of covers
on each unit, in which each unit cover consists of titles that
related to the topics discussed and expected achievement
5. The material discussed in textbook development based on role
playing consists of 11 units namely Terminology of Facilities,
Cleaning Equipment, and How It is Used, Public Areas, Room
Section, Facility and Equipment in the Room, Handling Guest
Request through the Phone, Housekeeping Service, Laundry,
Giving Direction, Giving Information about Tourism, Handling
Complaint, Housekeeping Relationships among other
Departments.
6. Activities provided on Textbook development based on role
playing provide many opportunities for students to learn to
speakand express phrases related to topics in the housekeeping
department.
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c. Quality of Textbook development based on role playing in English

for Housekeeping subject
Questionnaires that have been distributed to lecturers and
students have been analyzed to find out the quality of the textbooks
produced. The formula used to analyze the questionnaire is a model
of Sudjiono. In the formula, the assessment is categorized into:
excellent material, good material, ordinary material, good enough
material, and bad material. To get results from the quality of
Textbook development based on role playing in English for
Housekeeping subject, the draft of this book is given to expert
judges, lecturers, and students. The following are the results of the
Textbook development based on role playing in English for
Housekeeping subject.
1. Validation result from the expert judges
From the analysis of the expert judges, it was clear that the
textbook development based on role playing had a good quality.
Questionnaire analysis using the formula showed that the
textbook development based on role playing had excellent
quality. In addition, result from the expert judges showed that
the textbook development had fulfilled the criteria of a very high
validity material.
2. Results from the lecturers toward Textbook development based
on role playing in English for Housekeeping subject
The highest results of the questionnaire to assess the
development of role playing textbooks is 5 and the lowest is 1 in
each statement item, thus, the value of Mi is: ½ (290 + 58) =
174 and for Sdi values are: 1 / 3 (174) = 58.
Information:
The Ideal Mean (Mi) = ½ (Score Max + Score Min)
The Standard of Deviation (Sdi) = 1/3 (Mi)
From the calculation results of the questionnaires distributed to
English for Housekeeping subjects in 6 job training institutions
in Badung Regency, it is known that the total value of each unit
in the development of textbooks based on role playing is as
follows:
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Uni Uni Uni Uni Uni Uni Uni Uni Uni Uni Uni
t1 t2 t3 t4 t5 t6 t7 t8 t9 t 10 t 11
262 261 265 263 266 262 262 261 266 264 267
After knowing the value of MiAndSdi, it is determined:

Score Criteria
X ≥ 261 Excellent
203 ≤ X < 261 Good
145 ≤ X < 203 Average
87 ≤ X < 145 Below Average
X < 87 Poor
Based on the results of the table above, it is known that

the quality of the textbook development based on role playing
for Housekeeping students have met the criteria of good
material and can be categorized as good material and can be
considered as excellent material as well.
3. Results from students
Based on the score obtained after conducted the learning
process and providing exercises using Textbook development
based on role playing in English for Housekeeping subject, it is
known that the students' score and abilities have increased.
Besides that, the results of each session during the trial showed
that the books produced has good quality which could be proven
through an increase in the average score of students from LPK
Mapindo 69, 6 to 73.3, LPK Swantantra School Hotel 69, 6 to be
74, 6, LPK DhyanaPura 69.4 to 75, 6, LPK Fransisco IHEC 69, 9
to 77, 3, LPK LP3 PrshantiNilayam 70.1 won 79, 4, LPK
Monarch 68, 7 to 79, 2 after using Textbook development based
on role playing in English for Housekeeping subject
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CLOSING
There were three main objectives of this study. The first objective was
due to explain and describe the textbook development based on role
playing. The second, to describing the textbooks development based on
role playing that is produced. The third objective was to know the
quality of the textbook development based on role playing.
The data were gained by using several instruments namely
questionnaire. The questionnaire was adapted from the criteria of a
good material by Cunningsworth, Tomlinson, and BSNP. After
designing the instruments, the model of research and development by
Sugion (2013) was employed as the research procedures. From the
result, new material developed, analyzed, revised, field tested, analyzed,
and produced. At the end of the overall process of the accomplishment
of this study, some conclusions were as follows: 1. The researchers used
research and development model in designing the textbook
development based on role playing. The procedures were described into
problem identification, data collection, product design, design
validation, design revision, product field test, product revision, and
prototype. (2) The researcher produced the textbook development based
on role playing for the students in housekeeping majority. The material
of the textbook consists of eleven units, there are: a. Terminology of
Facility, Cleaning Equipment, and How It is Used, b. Public area, c.
Room service, d. facility and equipment in the room, e. handling guest
through the phone, f. housekeeping service, g. laundry, h. giving
direction, i. giving information about tourism, j. handling complaint, k.
housekeeping relationships among other department. (3) The quality of
the textbook development was obtained using result of the
questionnaire from the expert judges, English for Housekeeping
lecturers and students in six job training institute in Badung Regency.
The score in the questionnaire were calculated then categorized into
the following rating scale: excellent, good, average, less, and poor.
The result of the English for Housekeeping lecturers stated that
textbook development based on role playing had fulfilled the criteria of
good material and can be categorized as excellent material. The result
of the students’ questionnaire stated that textbook development based
on role playing could help the students in improving students English
achievement, moreover, in all session, mean score showed that the
score of students had increased.
www.ijmer.in 268
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Pembantu Pelayanan Pembersihan Kamar Tamu di Hotel
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Hamdani. (2011). Strategi Belajar Mengajar. Bandung: CV
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Informasi. Yogyakarta: Andi.
Kartini, T. 2007. Penggunaan Metode Role Playing untuk
Meningkatkan Minat Siswadalam Pembelajaran Pengetahuan
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Penulisandan Pemakaian BukuTeks. Yogyakarta: Ar-Ruzz
Media.
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Karang Indonesia (TERANG).
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Raja Grafindo Persada
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:Alfabeta
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Hotel. Bandung :Alfabeta
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www.ijmer.in 270
THE PROTECTION OF THE RIGHTS OF THE ELDERLY

AN OVERVIEW ON SOCIAL SECURITY SYSTEM IN INDIA
Cherukuri Sreenivasa Rao

Assistant Professor
S.V.D. Siddhartha Law College
Kanuru, Vijayawada
Andhra Pradesh, India
Abstract
The rapid growth of population has highlighted the need for
better social security arrangements for the elderly. Increased longevity
is making care of the elderly more expensive. Traditional family ties are
beginning to tatter and Government of India has initiated an array of
schemes and benefits in order to provide some level of social security to
the elderly.
Keywords: Social security for the elderly persons, statutory protection
of elderly, welfare benefits awareness.
I. Introduction
Elders are the path-makers of the younger generation in every
aspect in our society. The culture, traditions, customs, usages,
knowledge, and experience that younger generation is utilizing have
been inherited from elders, as it is the order of nature that elders in the
family nurture their younger generation from childhood to adulthood.
Even in the presence of several rights provided under legal system and
specific legislation to make available the deserved life to the elderly,
still they are ignored, neglected and ill-treated. The primary aim of
providing social security is to avail sustenance to the elders who cannot
work and earn their livelihood due to old age. Social security is only a
shaft of light for elderly. By utilizing it, “the facility to provide pension
to old age people, who are of below-the-poverty line and the provision of
old age homes” are covered. With the Centre or State Governments’
proper consideration on these two aspects, securing of senior citizens
can be provided in the present scenario. By providing social security by
the concerned governments in organized and unorganized sectors, we
can be on par with Western Countries, but because of short of certain
www.ijmer.in 271
resources, social security is not available to elderly.1 Due to elderly

being financially dependent, they are being subject to abuse.
World Health Organization documents explain the meaning of
elder abuse as a single or repeated act, or lack of appropriate action,
occurring within any relationship where there is an expectation of
trust, which causes harm or distress to older persons.2 It is any act of
omission or commission that harms the senior persons. Omission
means not doing something that is needed, for example not providing
food, medical care, etc., and commission, however, refers to doing
something harmful for example beating or throwing out the elderly etc.
Abuse takes place in such environment where elderly are expected to be
taken care. Social security is State obligation to provide financial
assistance in order to make possible basic needs of individual in old age.
With India being a home for one-fifth of the world’s current
total population that includes one-third of the world’s poor and one-
eighth of the world’s elderly, the approach for providing social security
to the elderly is of global significance.3
Social security, in its broadest sense, implies an overall security
for a person within the family, workplace and society. It may be
understood as measures designed to ensure that citizens meet their
basic needs (such as adequate nutrition, shelter, education, healthcare,
clean water and food supplies), as well as be protected from
contingencies (such as illness, disability, accidents, death,
unemployment, medical care, child birth, child care, widowhood, and
old age) to enable them to maintain an adequate standard of living
consistent with social norms. It must, also by implication, include
protection of livelihood and a guarantee of work, and adequate and fair
wages because without this other contingency benefits have no
meaning. Social security deals to cover both the absolute deprivation,
risk and vulnerabilities.4 Social security, social insurance and old age
1.
Dr. Harpreet Kaur, Social Security System: An Approach for the Protection of the Rights of
Elderly, Nyaya Deep,
The Official Journal of NALSA, Volume XVIII, Issue I & II, January 2017 & April 2017
2.
Ibid.
3.
Sumati Kulkarni, Siva Raju and Smita Bammidi, Social Security for the Elderly in India,
https://india.unfpa.org/sites/default/files/pub-pdf/ThematicPaper1_2.pdf, accessed on 12-07-2018
4.
Punita Shaw, ‘Social Security and Senior Citizen’, http://sansad.org.in/pdf/concept-note-social-
security-senior-citizen.pdf,
accessed on 20th March, 2018.
www.ijmer.in 272
pensions are listed in the 7th Schedule of the Constitution of India

under the Concurrent List. It is in compliance with these guiding
principles that the Government of India introduced on Independence
Day, 1995, the National Social Assistance Programme (NSAP) as a fully
funded, Centrally sponsored Scheme targeting the destitute to be
identified by the States and UTs with the objective of providing a basic
level of financial support.
II. International Perspective of Social Security for Elderly:
Universal Declaration of Human Rights, 1948 (UDHR) and
International Covenant on Economic, Social and Cultural Rights, 1966
(ICESCR) lay down the rights of elderly to social security and to an
adequate standard of living to support their health and well-being,
including medical care and necessary social services.5
The content of these rights is further specified in the normative
body of standards developed by the International Labour Organization
(ILO), which provides concrete guidance to countries for giving effect to
the right of elderly to social security, from basic levels to full
realisation.6
The Social Security (Minimum Standards) Convention, 1952
(No. 102),7 the Old-Age, Invalidity and Survivors’ Benefits Convention,
1967 (No. 128), and its accompanying Recommendation No. 131, and
the Social Protection Floors Recommendation, 2012 (No. 202) provide
an international reference framework setting out the range and levels
of social security benefits that are necessary and adequate for ensuring
income maintenance and income security, as well as access to
healthcare in old age. The extension of coverage to all older persons is
an underlying objective of these standards, aimed at achieving
universality of protection.
Convention No. 102 and No. 1288 envisage the provision of
income security to people who have reached pensionable age through
earnings related contributory pensions (guaranteeing minimum benefit
levels or replacement rates, corresponding to a prescribed proportion of
5.
https://en.wikipedia.org/wiki/Universal_Declaration_of_Human_Rights, accessed on 12-07-2018.
6.
https://www.ilo.org/declaration/lang--en/index.htm, accessed on 13-07-2018.
7.
https://www.ilo.org/secsoc/areas-of-work/legal-advice/WCMS_205340/lang--en/index.htm,
accessed on 15-7-2018.
8.
Ibid.
www.ijmer.in 273
an individual’s past earnings – in particular to those with lower

earnings) and/or by flat-rate non-contributory pensions, which can be
either universal or means-tested. Meanwhile, recommendation No. 202
calls for the guarantee of basic income security to all persons in old age,
prioritising those in need and those not covered by existing
arrangements. Such a guarantee would act as a safeguard against
poverty, vulnerability and social exclusion in old age for people not
covered by contributory pension schemes. It is also of high relevance to
pensioners whose benefits are affected by the financial losses suffered
by pension funds, whose pensions are not regularly adjusted to changes
in the cost of living, or whose pensions are simply inadequate to secure
effective access to necessary goods and services and allow life of dignity.
ILO social security standards thus provide a comprehensive set
of references and a framework for the establishment, development and
maintenance of old-age pension systems at the national level.
III. Constitutional Provisions:
Constitution of India, entry 24 in list III of schedule VII deals
with the “Welfare of Labour, including conditions of work, provident
funds, liability for workmen’s compensation, invalid (disability) and
old-age pensions and maternity benefits. Further, Item No. 9 of the
State List and item No. 20, 23 and 24 of Concurrent List relate to old
age pension, social security and social insurance, and economic and
social planning. Article 41 of Directive Principles of State Policy has
particular relevance to Old Age Social Security.
According to this Article, “the State shall, within the limits of its
economic capacity and development, make effective provision for
securing the right to work, to education and to public assistance in case
of unemployment, OLD AGE, sickness and disablement and in other
cases of undeserved want.”9
IV. Statutory Provisions:
(A) Code of Criminal Procedure, 197310
9.
http://www.oldagesolutions.org/constitutional-provisions/, accessed on 15-7-2018
10.
R. V. Kelkar’s, Lectures on Criminal Procedure, Fifth Edition by K. N. Chandrasekharan Pillai,
Eastern Book Company,
Lucknow, 2015
www.ijmer.in 274
Section 125 (1), (2) makes it incumbent for a person having

sufficient means to maintain his father or mother who, is unable to
maintain himself or herself and on getting proof of neglect or refusal,
may be ordered by a first class magistrate to make a monthly allowance
as such Magistrate thinks fit. It is applicable to all irrespective of their
religious faith and religious persuasions, and includes adoptive parents.
This section has been interpreted by the Supreme Court in its ruling so
as to make daughters and sons, married or unmarried, equally
responsible to maintain their parents.
(B) Hindu Adoption and Maintenance Act, 195611
The right of parents without any means to be supported by their
children having sufficient means has been recognised by section 125 (1)
(d) of the Code of Criminal Procedure 1973, and Section 20 (3) of the
Hindu Adoption and Maintenance Act, 1956. This act gives a statutory
recognition to the well-established normal obligation of a Hindu child
(male or female) to maintain his aged or infirm parents, as long as they
are not able to maintain themselves.
(C) Maintenance and Welfare of Parents and Senior Citizens
Act, 200712
Who is a Senior Citizen, Parent, Child or Relative under the
Act?
“Senior citizen” is any citizen of India of 60 years and above whether
living in India or not. “Parent” is the father or mother even if not of 60
years yet. “Children” are adult son, daughter, grandson and grand-
daughter. “Relatives” are those who are either in possession of the
property of the senior citizen or would inherit it.
Who can demand maintenance under the Act?
Parents and grandparents who are unable to maintain themselves from
their own income can demand maintenance from their children as
defined above and “Childless Senior Citizens” who are unable to
maintain themselves from their own income can demand maintenance
from their relatives as defined above.
11.
Prof. G. C. V. Subba Rao, Family Law in India, Tenth Edition, Narender Gogia & Company,
Hyderabad, 2017
12
http://socialjustice.nic.in/writereaddata/UploadFile/Annexure-X635996104030434742.pdf,
accessed on 15-7-2018
www.ijmer.in 275
What is Maintenance?
Maintenance includes provision for food, clothing, residence, medical
attendance and treatment. Maximum amount which may be ordered for
maintenance of a senior citizen by the Tribunal shall be such as
prescribed by the State Government which shall not exceed Rs. 10,000/-
per month.13
Who is entitled to Maintenance?14
Parents, grandparents and senior citizens who are unable to maintain
themselves from their own income and property are entitled to demand
maintenance from their children and specified relatives respectively
with sufficient means.
Whose obligation is it to maintain the elderly?
It is the obligation of the children and specified relatives with sufficient
means to provide maintenance for their parents and childless senior
citizen respectively.
How is an Application for Maintenance made and decided?15
Application for maintenance may be made by the senior citizen or
parent to the Tribunal under Section 4 in layperson’s language giving
names, full details and addresses of the persons from whom they are
demanding maintenance. If there is more than one child or relative,
they may claim maintenance from one or all of them depending on their
means of income.
Maintenance proceedings may be initiated against any
child/children or relative in any district where the parent or senior
citizen lives or last lived or where the child/children or relatives live. If
such applicants are incapable of making an application themselves, any
other person or registered voluntary organisation authorised by
him/her can make the application; or the Tribunal can take suo moto
cognizance and proceed. Upon receipt of the application, the Tribunal
would issue notices to the children, conduct hearings, take evidence and
order maintenance. Tribunal may also refer the case for reconciliation
13
Ibid.
14.
The Maintenance and Welfare of Parents and Senior Citizens Act, 2007; Authored By: Sunil
Chauhan, Joint Member Secretary; Published By : Haryana State Legal Services Authority, 2nd
Floor, New Block, Old District Court Premises, Sector 17, Chandigarh 160 017
15.
Ibid.
www.ijmer.in 276
or pass interim orders for maintenance. If the children or relatives fail

to pay the ordered maintenance without sufficient reason for 3 months
after its due date, the senior citizen can approach the Tribunal again
who may impose a fine or order imprisonment of the child/relative up to
a month or until payment is made whichever is earlier.
What if the elderly themselves and their children and specified
relatives do not have sufficient means to maintain them?
State Governments may establish, in a phased manner, sufficient
senior citizen homes and maintain the same for indigent or abandoned
or neglected (by their kith and kin) beginning with at least one old age
home in each district, sufficient to accommodate a minimum of 150
elderly. State Government may also prescribe scheme for management
of old age homes, set standards and prescribe minimum services for
medical care and entertainment of the elderly in the old age homes.
Abandonment:
Under Section 24, if anybody who has responsibility for the care
or protection of a senior citizen leaves him/her in any place, with the
intention of wholly abandoning him/her, such person shall be
punishable under the Act with imprisonment of either three months or
fine up to Rs. 5,000 or both. The offence would be cognizable and will
be tried by a Magistrate.
Conditional Transfer of Property:16
An important provision has been made for the elderly to claim
their property back from children, if given conditionally after
commencement of the Act on promise of looking after their needs and
amenities if such promise is not fulfilled. Under Section 23, if after
commencement of the Act any parents or senior citizens have
transferred their property to their children or relatives on the condition
that they would provide certain maintenance and amenities to the
senior citizen, but subsequently if they neglected or refused to do so the
parents or senior citizens can get such transfers voidable (cancelled) at
their option by having such transfer treated as a fraudulent or coercive
acquisition and can seek return of their property so transferred.
16.
http://hslsa.gov.in/sites/default/files/documents/Senior%20Citizens%20Act%2C%202007%20Engli
sh%20%26%20Hindi%20pdf.pdf, accessed on 16-07-2018.
www.ijmer.in 277
The Act has to be brought into force by individual State

Governments. By now, all the States and UTs except Jammu &
Kashmir and Himachal Pradesh have brought the Act into force. The
Act is not applicable to the State of Jammu & Kashmir, and Himachal
Pradesh has its own Act for Senior Citizens. States/UTs which have
notified the Act are required to take the following measures/steps for
effective implementation of the Act:
• Frame Rules under Section 32.
• Appoint Maintenance Officers under Section 18.
• Constitute Maintenance and Appellate Tribunals under Section 7 and
15 of the Act.
Implementation of the Act:17
As per the available records, the Act has so far been notified in
21 States, namely Karnataka, Jharkhand, Nagaland, Andhra Pradesh,
Punjab, Rajasthan, Arunachal Pradesh, Tripura, Madhya Pradesh,
Kerala, Chhattisgarh, Tamil Nadu, Orissa, Goa, Assam, Gujarat,
Haryana, Uttarakhand, West Bengal, Maharashtra, Mizoram and 6
Union Territories namely, Daman & Diu, Dadra & Nagar Haveli, Delhi,
Puducherry, Chandigarh and Lakshadweep.
Seven States, i.e., Gujarat, Karnataka, Punjab, Rajasthan,
Tripura, West Bengal, Chhattisgarh and 1 Union Territory i.e.,
Chandigarh have constituted both Maintenance Tribunal and Appellate
Tribunal. However, apart from Karnataka and Chandigarh, Gujarat,
Punjab, Rajasthan, Tripura, West Bengal and Chhattisgarh have
appointed Maintenance Officers as per the provision of the Act. Assam
has constituted the Maintenance Tribunal only.
In Gujarat, Tripura and West Bengal, the rules have been
formulated for implementation of the Act.
Source: Ministry of Social Justice and Empowerment.
(D) Personal Law
• Muslim Law18
17.
Ibid.
18.
http://www.legalservicesindia.com/article/2506/Judicial-Approach-towards-the-Rights-of-
Elderly-Persons.html, accessed on 16-07-2018.
www.ijmer.in 278
Children have a duty to maintain their aged parents even under

the Muslim Law. According to Mulla:
a. Children in easy circumstances are bound to maintain their poor
parents, although the latter may be able to earn something for
themselves.
b. A son, though in strained circumstances is bound to maintain his
mother, if the mother is poor, though she may not be infirm.
c. A son, who though poor, is earning something, is bound to support
his father who earns nothing.
According the Tyabji, parents and grandparents in indigent
circumstances are entitled, under Hanafi Law, to maintenance from
their children and grandchildren who have the means even if they are
able to earn their livelihood. Both sons and daughters have a duty to
maintain their parents under the Muslim law. The obligation, however,
is dependent on their having the means to do so.
• Christian and Parsi Law:19
The Christians and Parsis have no personal laws providing for
maintenance for the parents. Parents, who wish to seek maintenance,
have to apply under provisions of the Criminal Procedure Code.
V. Social Security in India:
The National Social Assistance Programme (NSAP)20 that came
into effect from Independence Day of year 1995 signifies an important
step towards the fulfilment of the Directive Principles of State Policy
under Article 41 of the Indian Constitution.
The said programme initiated the National Policy for Social
Assistance for the poor and its objectives are at ensuring minimum
national standard for assistance in social aspect in addition to the
benefits that the States are providing at present or might provide in
future. NSAP currently consists of the following Five Schemes,
namely:-
(1) Indira Gandhi National Old Age Pension Scheme (IGNOAPS).
19.
http://www.legalserviceindia.com/article/l170-Rights-Of-Senior-Citizen.html, accessed on 16-07-
2018.
20.
http://nsap.nic.in/Guidelines/Revised_guidelines.pdf, accessed on 16-07-2018.
www.ijmer.in 279
(2) Indira Gandhi National Widow Pension Scheme (IGNWPS).

(3) Indira Gandhi National Disability Pension Scheme (IGNDPS).
(4) National Family Benefit Scheme (NFBS).
(5) Annapurna (Nutrition).
(1) Indira Gandhi National Old Age Pension Scheme
(IGNOAPS):21
The National Old Age Pension Scheme (NOAPS) was one of
such schemes introduced in the year 1976 in the State of Jammu &
Kashmir. It remained in operation for several years, but failed to bring
the desired results mainly because of non-adherence of norms and
faulty implementation. In order to overcome the deficiencies, the
scheme was revamped in 1995 by Government of India and renamed as
Integrated Social Security Scheme (ISSS), constituting of three sub-
schemes viz. National Old Age Pension Scheme (NOAPS), National
Maternity Benefit Scheme (NMBS) and National Family Benefit
Scheme (NFBS). The first component of the scheme was further
rechristened as Indira Gandhi National Old Age Pension Scheme
(IGNOAPS) and formally launched on November 19, 2007. The revised
version of the scheme in the form of IGNOAPS distinguishes itself from
its earlier versions by rationalizing the procedure, regulating the
sanctions, maximizing the awareness and minimizing the official
interventions through strict vigil and eligibility criteria for coverage of
beneficiaries.
Eligibility and Scope: The eligibility criteria of the scheme is as under:-
I. The age of destitute (male or female) should be 65 years or
above. As per the revised eligibility criteria, the age has been
reduced to 60 years instead of 65 years w.e.f. April 1, 2011.
However, the revised guidelines were not implemented in
Jammu & Kashmir State by the end of 2011-12 due to belated
notification of guidelines.
II. He/she must be a destitute in the sense of having little or no
regular source of subsistence/financial supports from other
family members or other sources.
21.
http://ecostatjk.nic.in/ecosurvey/Evaluation%20Report%20on%20%20IGNOAPS.pdf, accessed on
17-07-2018.
www.ijmer.in 280
III. He/she must belong to a household living below-the-poverty line

according to the criteria prescribed by the Govt. of India.22
IV. The Central contribution of pension under the scheme is Rs.
200/- per month per beneficiary and the State Govt. can
contribute over and above to this amount out of State resources.
At present, every beneficiary is getting Rs. 400/- per month with
a break-up of Rs. 200/- each from Central and State share. In
the revised guidelines, the Central share would remain
unchanged in respect of beneficiaries in the age group of 60 to
79 years. However, it would be enhanced to Rs. 500/- per month
per beneficiary aged 80 years and above w.e.f. April 1, 2011. The
revised guidelines were not implemented in Jammu & Kashmir
by the end of financial year 2011-12.
V. The scheme aims at providing social protection to the eligible
beneficiaries.
(2) Indira Gandhi National Widow Pension Scheme
(IGNWPS):23
The objective of the scheme is to give financial assistance at the
rate of Rs. 400/- per month to all the identified pensioners who are
widows of the age group of 40 years to 64 years, and from below-the-
poverty line families. The coverage is universal and there shall not be
any quota at any level.
Eligibility and Scope: The eligibility criteria and requirement of
documents: To get the benefit of the scheme, following criteria need to
be fulfilled by an applicant:
I. She must not be less than 40 years of age and not above 64
years.
II. She should have to be from a family which is below-the-poverty
line.
III. She shall get the pension till she attains the age of 65
years or till her remarriage.
IV. She will be automatically covered under IGNOAPS at the
age of 65 years.
22.
Ibid.
23.
http://purbamedinipur.gov.in/DPRDO/Schemes/IGNWPS.pdf, accessed on 18-07-2018.
www.ijmer.in 281
(Pradhan of the Gram Panchayat shall review the list of the

widows regularly and report any case of re-marriage).
(3) Indira Gandhi National Disability Pension Scheme

(IGNDPS):24
Government of India has launched the Scheme during February
2009. Persons with severe or multiple disability in between the age
group of 18 to 64 years and belonging to a household of below-the-
poverty line will be eligible to get pension at the rate of Rs. 300/- per
month in the above scheme. Subsequently, Government of India has
revised the age limit to 18 to 59 years w.e.f. April 1, 2011 and further
raised to the age group to 18 to 79 years w.e.f. October 1, 2012.
During the year 2015-16, provision of Rs. 3154.61 lakhs has
been made under State Plan in original budget estimate to cover 90,754
beneficiaries.
Eligibility and Scope:
I. The applicant must be in the age group of below 64 years.
II. The persons who have more than 80% or above handicapness.
III. The income of the family of the beneficiary should be up to the
score of 16 in the below-the-poverty line list for rural areas and
to the beneficiaries of urban areas, one who possesses the below-
the-poverty line beneficiary mark as per the guidelines of Urban
Development.
IV. The beneficiary above the age of 21 years who does not have
son, who is a permanent resident of Gujarat since 10 years.
V. Must be a holder of Disable Identity Card issued by the State
Government.
What kind of benefit is available? :
I. Rs. 600/- per month to the disabled applicant of below 17 years of age.
II. Rs. 600/- per month to the disabled applicant of the age group of 18
to 64.
24.
https://sje.gujarat.gov.in/dsd/showpage.aspx?contentid=1577&lang=english, accessed on 18-07-
2018.
www.ijmer.in 282
III. The assistance is paid to the applicant at his home through money
order (or) credited to their bank or post office account.
(4) National Family Benefit Scheme (NFBS):25
The National Family Benefit Scheme (NFBS) was introduced by
Government of India throughout the country in August 1995 with the
aim to provide immediate succour to those below-the-poverty line
(BPL) families whose lone bread-earner expires due to natural or
accidental cause. Till 2002-03, it was fully funded by Government of
India under Centrally sponsored scheme. Thereafter, it was shifted to
State sector and is currently in vogue under the same pattern. The
instant scheme is being implemented by the Social Welfare Department
throughout the State.
Under National Family Benefit Scheme, one time financial assistance
of Rs.10,000/- (ten thousand) is being paid to the bereaved family living
below-the-poverty line whose lone bread-earner expires due to the
natural or accidental death and is having no substantial source of
income. In addition to this, the deceased bread-earner should be in the
age group of 18 to 64 years.
Eligibility and Scope:26
Before sanctioning the cases under National Family Benefit
Scheme, the following parameters are required to be fulfilled by the
applicant:
I. The deceased person should be primary bread-earner of the
family and his earnings should be substantially contributing to
the overall household income.
II. The deceased person should be in the age group of 18 to 64
years.
III. The family applying for assistance under National Family
Benefit Scheme should belong to below-the-poverty line
category.
IV. There should be no earning son in the family.
25.
https://govinfo.me/national-family-benefit-scheme/, accessed on 18-07-2018.
26.
Ibid.
www.ijmer.in 283
Note: The term “household” includes spouse, minor children,

unmarried daughters and dependent parents of the deceased. In
case of death of an unmarried adult, the term “household” will
include minor brothers/sisters.
Objective of the Scheme:
The main objective of National Family Benefit Scheme is to
provide immediate succour to the dependents of the deceased by way of
providing one time financial assistance of Rs. 10,000 /- (ten thousand)
to the next of the kin of deceased.
(5) Annapurna (Nutrition):27
If all the eligible persons can be covered under the National Old
Age Pension Scheme, here will be no person to be covered under the
Annapurna Scheme. It is, however, suggested that this scheme may be
merged with the Antyodaya Scheme so that the poor people who are
covered under the Antyodaya Scheme may get a specified quantity of
food grains free of cost instead of at a concession price.
Ministry of Consumer Affairs, Food and Public Distribution
provides concession and special facilities under the Antyodaya Scheme
for the below-the-poverty line. The below-the-poverty line people,
which also include older persons, are provided food grains at the rate of
35 kilograms per family per month. The food grains are issued at Rs. 3
per kilogram for rice and Rs. 2 per kilogram for wheat.
The persons aged 60 years and above from the below-the-poverty line
category are given priority for identification. One of the main tasks for
attaining the objective of the schemes of NSAP is awareness generation
among the people about eligibility, scale of assistance and the procedure
to be followed for obtaining benefits.28
VI. Suggestions for Social Security to Senior Citizens:
1. Pension Scheme for Elderly for persons who are 60 and above years
of age. It may not be a burden on any State as this amount would be
deducted from them during their earnings time, which would
ultimately be given to the elderly. This amount would be the financial
insurance for the old age people.
27.
https://www.india.gov.in/govt/viewscheme.php?schemeid=426, accessed on 20-07-2018.
28.
Ibid.
www.ijmer.in 284
2. Authorities will be monitored from time to time who will be

distributing the pension fund to the beneficiaries.
3. To make the elderly independent at certain level, some sort of social
security in the manner of pension is provided to elderly and their
children grabbing of financial resources can be scrutinized.
4. One of the alternatives to social security is Joint Family System. The
basic needs are food, shelter and clothing. These basic needs can be
fulfilled in joint family for elderly. These types of families should be
taken as leading lights and should be supplied with some facilities such
as ration concession, priority in child admission, etc., which can be
ascertained as the prime motivational source for those families, which
are properly taking care of the elderly.
5. For the elderly who do not have shelter, the old age home is a
welcome step, but the actual picture of the situation of old age homes is
very awful.
6. These days, trend of “Pay-Stay” is going on whereby on depositing
the required fee, elderly are supplied food, shelter and other facilities,
but this can only be utilized by those who have financial security. The
question arises here is what about those, who are of below-the-poverty
line, abandoned and dependent.
7. The present requirement is to provide old age homes to the elderly,
who cannot have the funds for basic needs of life and who are hopeful of
their survival without their children or heirs. It is an establishment
wherein there is no need for them to pay anything. Their responsibility
should be taken by the concerned government.
VII. Conclusion:
During the plan period that is from first Five-Year plan till
Twelfth Five-Year plan, the concerned governments plan for providing
social security to old age people. According to the Constitution of India,
Article 41 provides public assistance to old age, which means in the
economic capacity of the country to provide financial aid to old age
people. All the State Governments have federal system and got grants
from Centre Government from time to time so as to tackle the
confronted situations at various levels.
The prime responsibility on an individual whose candidature is in
question that during his halcyon days, he should arrange for his old age
www.ijmer.in 285
as the situation of senior citizen is not certain nowadays. The educated

people should focus on this issue to secure their old age beforehand. It
is an even-handed view that responsibility is expected from children,
who are supposed to maintain the balance between the needs of their
own children as well as their parents. The hike in price of essential
commodities has forced the people to evade the responsibility of their
parents.
At this point, the State comes in picture to support the senior
citizens, providing old age pension to above-the-poverty line and below-
the-poverty line families and the State can provide social security to the
elderly to a certain extent while considering the suggestions mentioned
above. The old age homes provision is not considered as an alternative
rather it is the last resort, which is not by choice, but it is imposed as
one option. Therefore, it is an obligation of government to provide the
needs of elderly persons of the society for unpredicted circumstances
that are beyond the control.
www.ijmer.in 286

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Volume 7, Issue 8(1), August 2018

International Journal of Multidisciplinary

EDITORIAL BOARD MEMBERS

Dr.Sandeep Narula Prof.Mehsin Jabel Atteya

Dr. K. John Babu Dr.J.B.Chakravarthi

Volume 7 Issue 8(1) August 2018

15. The Role of Local Culinary Entrepreneurs in Tourism 190

SOCIAL SCIENCES, HUMANITIES, COMMERCE & MANAGEMENT, ENGINEERING

THE ROLE OF INTERNAL CONTROL TO MINIMIZE THE

themselves. If there is a goal’s bias amongs the individuals and

that leads individuals to have a conviction that they are treated

Based on the discussed background, it can be concluded

b. Fictitions revenues, is the financial report fraud by creating

company’s asset or revenue which will not cause a loss to the

Testing of research instrument included test of validity and

The results of the Kolmogorov Smirnov normality test in

Multiple regression analysis (moderated regression

4. Bakshi, Arti dan Ekta Rani. 2009. Organizational Justice

12. Hwei, She. dan Santosa, T. Elisabeth Cintya. 2012. Pengaruh

THE EFFECT OF SERVICE QUALITY TOWARD CUSTOMERS’

Tourism growth nowadays has a great increase as there

Bali is one of the favorite tourism destinations for

Table 2.The Number of customers visiting 707

NO MONTH NUMBER OF CUSTOMERS

series of intangible activities which occurs as the result of an

provider) which is followed by a consistent repurchasing pattern.

5) refer to a more positive word of mouth with the assumption that

of questionnaires and documentation of the respondents. The number

Ha: ß ≠ 0 There is a positive effect simultaneously and

fulfillment and security assurance (X4) has no positive effect

the incomplete facilities, keep the good appearance of the

TOURISM IMPACT AND COMMUNITY QUALITY OF

shelter in the absence of shade trees on the beach or rented beach

beauty can become an icon of tourism for the Pererenan beach

Picture 1. Mina Statue an Icon of Pererenan Beach

The growth of villas in Pererenan Village is also influenced

Picture 2. The menus at Premier Surf Restaurant

as tourist attractions. A positive tourism contribution is always a

quality of life of the community is related to the impact of

appreciation of beauty, balance, form), and self-actualization (for

by the respondents refers to the impact of 'economy' 6.10 percent,

according to Pererenan Village Bureau I Made Rai Yasa, the

Picture 3. word cloud from 99 dominant words used as research

making, therefore people need to understand tourism's

Picture 4. Word tree analysis “economy”

Picture 5. Word tree analysis “field”

unemployment and business opportunities. The economic impact

Picture 6. Word tree analysis “culture”

Picture 7. word cloud from 134 dominant words used as research

Picture 8. Word tree analysis “work”

Picture 9. Word Tree analysis “economy”

Picture 10. Word Tree “Family”

their interaction occurred at Villa, the beach 8.4 percent,

1. Bali Surf Wave. 2013. “Pererenan Beach”, sumber:

11. Stynes, Daniel J. Economic Impacts of tourism, Enconves

THE ANALYSIS OF THE SOUNDNESS LEVEL OF

The Soundness Level of Cooperative.

Source: Processed Secondary Data

Based on the analysis of efficiency aspect, it shows that KPN

treasurers of local government organization (OPD) in paying the

Omardani. 2010. Analisis Kinerja Keuangan Koperasi Primkopos pada

WORKLOAD ANALYSIS OF FRONT OFFICE STAFF AT

NK Dewi Irwanti 1, M. Yusuf 2 , NP Yunik Anggreni3,