Audit Int 04

Analysis National Income (Investment Function) : System Economy Islam Page 1

The Title :
Analyst National Income
Investment Function : System Economy Islam
at Government Sector

The development economics matters have measurement from period to other’s period with using variable national
income at a certain country. The economics activity at a certain country have group become four sector that is
household sector, company sector, government sector and outside country.
From this time we will discuss analyst national income with using investment function profound system economics islam
at government sector.
Investment Function :
Analyst calculation investment function on economics which have two sector that is household savings and expending of
company investment.
The government have to claim for finance of certain expending as syari’e determination. The prime assignment is to
fulfill certain public needs and for that the government have to claim for guarantee fluency economics activities.
Thoughtful matter of moneter management relate to supply and be located money, participation profound of
production public things and other’s (Hj.Nil Hasan,1992;25‐26).
There is one prime problem profound social life at community that about how to commit distributing and allocating
of scarce power source without must be in contradiction with direction economic macros. (Chapra,2002;307)
If there are too much power source proportion that be located for consumption, so savings and investment level that
could be enough be able to create full employment and economics growth level that optimal.
The efforts profound to defend in order to get high investment extend tendency on increase to loan outside country
which will be increase debt load and to obsorb power source for comsumption need and investment for the future or
there will be expansion monetary. This matter will be give pressure on inflation but also be able decrease savings level,
investment and competitive ability export in the future.
If proportion of power source mentioned only use for rich man and hold the power for consumption luxurious goods and
advantage less, while power source proportion which be located for goods and fulfillment basic need service basic not
enough.
Therefore of that, power source be located not enough only for produce consumption volume of aggregate appropriate
and a balance between savings and investment, but also necessary for give contribution on creating full employment
also economics growth that optimum the other’s side. Distribution be spread evenly income and stability economics also
must to realization in order to all of an individual profound community to enjoy prosperous life.


The government should be able to prepare and to create opportunities in order to all of person have a role also
profound economics activities. Person have a role for prepare and ride in his/her own life need and person’s that
depend to her/his life.
Human being created for all of the creature live and only for human being, clan of muslim ability to use the power
source nature as obligation religion (Nik Mustafa :1992;23‐24).
The macros economics islam area consider although that market system very significant, however not reasonable.
Mechanism need effective actor from government and morality reformation from community which have appropriate
with each capacities, in order to purpose humanity from community be able declare on a effective scale without too
much government intervention. Market system that work profound value framework and islam institution more
effective profound to declaration this directions.
Household savings sector
The desire save also constitute function of income, therefore savings constitute of income residual that could not be
used for consumption.
Positive effect from savings to growth this moment already proven. Savings level be  able to increase output and work
field. In fact the countries with high savings level generally have more faster growth from the countries which have low
savings level.
All of factor that decrease consumption proportion in total income will be increase savings.

The government enforce UU No.10 year 1998 already give broad opportunities for developing of network by the syari’e
banking.

BI Laws No.23 years 1999
Bank Indonesia have just prepared rules of equipment and others facilities which will support fluency operation bank
base on sharia also application dual system banking.
The Factors Household Consumption :
1. The consumption of transportation tool for every day requirement kind to office, market or need by emergency
condition. Transportation tool with two wheel or four need substance fuel. The society use subsidy substance
oil fuel.
Government policy
Laws no.12 year 2014 about APBN‐P 2014
The laws determine volume quota subsidy substance oil fuel from 48 million KL to 46 million KL.
To create energy alternative source BIOETANOL as substance oil fuel substitute.
Substitute substance consist of :
a) Cassava =BIOTENAL =>motorcycle fuel substance
b) Trash   = Gas METANA =>purification process
= BIOETANOL =>citizen stove & electricity generator
c) Cane = CIU (60%‐80%) =>motorcycle fuel substance & car


d) Organic trash =BIOETANOL =>independent electricity
& Cow feses =Gas Metana
Cow = 20 kg feses
6 cow = electricity power = A2.500 watt
650gr/hour = 3 kg

The government not yet to production in great quantities at Indonesia that cause electricity crisis and LPG.

2. To wear public transportation.
Minimum Standard Servicing (MSS) for public transportation at Jakarta. Corresponding with norm law that is in
article 141 and article 198 Laws no: 22 years 2009 regulate about cross traffic and road transportation that each
public transportation serve have to MSS. The existence MSS will be protect privilege consumer or user public
transportation for get good servicing guarantee, comfortable and safe. Public transportation at Jakarta be
oriented as feeder for train and transjakarta. There are designated route for public transportation that
overlapping not only impact  for user, but also for industrialist and driver. There are not healthy competition
happen because not accessible and not integrated have already designated route for transportation. This
condition cause public transportation user should be a lot removal other moda as taxi or ojek (motorcycle rent)
and the end will much cost for user public transportation.

Governor laws no.141 year 2015 come out at 18 march 2015 there is crossing prohibition time for motorcycle at
two road (MH Thamrin to Medan Merdeka Barat) only be effective from 06.00 am – 11.00pm.

At this may 2015, stage bus with free tour already pass at segment road  Jl. Medan Merdeka Selatan, Pasar
Baru, until Bundaran Hotel Indonesia. There will be expand for scope move across stage bus with free tour
reach Kota Tua, West Jakarta.

3. Rent place for living at Jakarta.
The governor at district DKI Jakarta will be built 5.000 unit a house with several stories at Kemayoran area,
central of Jakarta.The rent of a house with several strories could be able paid Rp 450.000,‐(max price) or be paid
each day, said Ahok (governor DKI Jakarta). Ahok already install target reconstruction 50 thousand unit a house
with several stories at Jakarta on this year (2015).This 50 thousand a house with several stories unit will be
spread evenly on the whole DKI Jakarta area.
4. To fulfill every day require that is SEMBAKO (nine of basic substance).
Rice, fry oil, egg/fish, vegetable soup, tahu/tempe, cooking spices,  red pepper, garlic/ and oil/gas.
In food laws as well as trade laws no.1 year 2015, there are two basic thing that could not do by trader
collective, two basic thing are business agent not to accumulate or keep exceed maximal quantity that colud be
permitted or out of fittingness limit, with intention for more income until cause basic substance become
expensive or the price bounce up.
Article 133 laws no.18 year 2012 about food with threat 7 year jail or +/‐ Rp 100 billion.
Article 107 laws no.7 year 2014 about trade with threat +/‐ 5 year jail or fine about+/‐ Rp 50 billion.


5. Clothes.
If the government raise  interest rate, income will be on increase and inflation will be move to the level wanted.
If the government to decrease soil oil price therefore inflation go down, the rill shoppinglevel will grow up fast.
Consumer shopping will be grow up become support prime expansion.
The expending of industrialist investment
Private sector, the activities economics community consider very significant. The scheme economics organization
according to islam very appreciate creativity and an individual initiative. An individual complete claim to be own and
decide economics activities according to their own choice, in framework sharia rules. Base on this matters, government
have a role which have to complete initiative that could be taken by industrialist sector.

Islam system will be able to open extensive opportunities for an individual in order to movement and be related to
economics activities. (Hj.Nil Hasan,1992:25‐26)

The government play the role of economics issues that will be directives instructions line for this policy formulation. This
policies approach have to be relevant and dynamic. The moderate situation from Al Qur’an and Sunnah on base analogy
(qiyas) or arguments be based on interest public (masaliah) and formulation policy  by pass through conference process
(syura) which sharia policy formulation on base ijtihad. The both formulation policy indicate how islam approach to be
able close relationship between government and industrial sector in manage management.
Factor’s expending of company investment :
1. Main factor :
a) In case arrange unboiled substance
Direktur Jendral Industri Kimia, textile, and all sorts of ministry industrial affairs, harjanto said that his side
will be facilities reserve (buffer stock) basic substance for TDP (Textile and Descedant Product).
With leads output industries for outside country market therefore it is indeed so to get revenue in US Dollar
for finance input industries that also be paid by US Dollar. Especially right now rupiah has moderate
weakened , therefore will be gain profit for export product to remember the price could be cheaper.
The government will be build facilities similar for commodity leather. In fact there is intense discussion by
Direktorat Jendral Bae Cukai and Direktorat Jendral Pajak Kementrian Keuangan in order to board document
textile import become only one roof. BKPM will be make special investment counter TDP that will be give
consultation for collective agent industry. The implementation National Standard Indonesia in order to
export product TDP not lost competitiveness.

b) Site distance with Market.
Peraturan Mentri Perdagangan (the Regulation Trade Minister) no.72/M‐DAG/PER/9/2015.
About service standardization trade area and control National Standard Indonesia compulsory to trade
commodity and service. This regulation , letter of commodity list  will be remove for import commodity that
compulsory NSI, but also have to own and include Number of Commodity List (NCL), if the import
commodity obligation NSI not having NCL, so the commodity could not enter customs office area.



c) Transportation means or transportation expense.
Peraturan Presiden (The President Regulation) RI no.40 year 2015 about Nexus Ministry.
Mentri Perhubungan (The Nexus Ministry) organize function  :
1) Formulation and permanent regulation at implementation servicing area, safety and transportation
security also enhancement accessibility,  means connectivity and transportation infrastructure.
2) Regulation Implementation at service implementation area, safety and security transportation, also
increase operation, accessibility, and transportation infrastructure.
3) Servicing technical leadership and superivision on implementation service safety and transportation
security also enhancement accessibility, means connectivity and transportation infrastructure at
territory.
4) Implementation research and developing of transportation area at territory.
5) Implementation developing of  power source human being transportation.

d) Means allocation product.
Keputusan Mentri Perdagangan (KepeMenDag) RI no.110‐114/M‐DAG/KEP/11/2015.
Directorate General Standardization and Consumer Protection Ministry Trade determine 5 territory with
Predicate Daerah Tertib Ukur year 2015 that are Kabupaten Kaimana (111), Kabupaten Barru (112), Kota
Salatiga (110), Kota Palangkaraya (113) dan Kabupaten Fak fak (114).
The direction  : to be produced society arrangement that fair and prosperous.
The effort for increase protection about public interest consumer on existence guarantee measurement
result in trade transaction.
Directorate General SPK also legimate 142 Pasar Tertib Ukur year 2015 that be in a place at work area Balai
Standarisasi Metrologi Legal (BSML/Metrology legal standardization public hall) Regional I,II,III &IV.
At year 2012 total traditional market 9.559 market and year 2015 total traditional market that assigned as
Pasar Tertib Ukur reach 410 Pasar Tertib Ukur (4,28%).

e) Total Man Power
To increase investment stretching TDP so that be able to increase man power keep on mind this industry
absorb 10,6% from Total Man Power at manufacture industry area.
To keep on mind this characteristic industry TDP  which have labor intensive industry (Industri Padat Karya).
Kementrian Ketenagakerjaan (Ministry Man Power) year 2014 list names of that minimum wages (Upah
Minimum)City/Region (UMK) middle of Jawa more higher only just Rp.1,38 million.
Relative smaller than West of Jawa agreat Rp.2,95 million each month.
Man power at middle of Jawa only just graduate elementary school (Sekolah Dasar) dan junior high school
(Sekolah Menengah Pertama).

f) Helper Subsatance :
1) Water energy.
Program development Period National intermediate (rencana Pembangunan Jangka Menengah
Nasional) that government arranged with have target RPJMN 2019 which have 100% access drink
water.


For expand PDAM and current drink water to society, so should be to this regulation holder is
government. The regulation about water and sanitation sould be make because PDAM as operator
could not regulate their own for finance and construction water network.
2) Electricity power
The consumption 250 kwh electricity meter square (space) every year.
The increase electricity rate for industry by their side ask to discount 40% from electricity price starting
at 11.00 pm to 06.00 am for become expense efficiency.

2. Supporting facilities :
a) Credit facilities :
Capital
In BI a part interest reference at 7.5% level (17/11/2015)
b) Insurance :
1) Man Power
2) Construction

c) Tax’s.
The cooperation appointment of trade agreement (FTA) by EUROPEAN UNION countries and also United
States of Amerika by increase export capacity TDP with another countries. Therefore, export product TDP
Indonesia should not pay import duty till 30% to their area.
The TDP industry will be oriented export sector that make this industry enter in to the 143 industry sector
list that will be receive tax allowance.


For determine National Income :

Y = National Income Balance
E = expense
C = Consumption Balance
I  = Industry Investment
S = Savings
a = magnitude hause hold consumption expense if society income nothing (consumption autonomus)
b = MPC= marginal desire from society for do consumption (MPC = Marginal Prospensity to Consume)

E = C + I   so income equetion :
Y = C + S   balance will happen if income (Y) same with Expense (E), or in mathematical could write  as follows :
Y = E because E = C + I mean balance equation could write as follows :
Y = C + I then,
C + S = C + I
S = I

Economy with two sector will be in balance condition if savings as follows industry investment.
Y = C + S
S = Y – C because : C = a + bY
Then   S = Y – (a + bY)
   = Y‐ a – bY
   = ‐a + (1 – b) Y

In economics Islam economy in macro consist on different two characteristic, namely muzakki( person who pay Zakat)
and mustahiq (person who have the right to receive Zakat) so that equation must be adapted :

C(1) = a + bY ( 1 – z – f)
C(2) = zY + fY
C      = C(1) + C(2) maka
C      = a + b Y (1 – z – f ) + zY + fY

z = magnitude Zakat that should be paid = 5% from Income
f = magnitude infaq/shadaqah = 5% from Income


1. To determine magnitude National Income Balance for Economics Islam :

The way, no.1 :
Equate between Income (Y) with the whole expense
(C + I ), If Industry Investment  Rp 20 Billion and the house hold consumption level 100%.
Kondisi break even : Y = C then,
Y = 25 +0,5Y
Y – 0,75 Y = 25
      0,25 Y = 25
   Y = 25/0,25 = 100
Then :
Y = C + I : C = C(1) + C(2)
C(1) = a + bY (1 – z – f)
       = 25 + 0,75 (Y‐ 0,05Y – 0,05Y)
= 25 + 0,75Y – 0,375Y – 0,0375Y
= 25 + 0,675 Y
C(2)   = zY + fY
= 0,05Y + 0,05Y
   = 0,1 Y
C = 25 + 0,675 Y + 0,1Y
= 25 + 0,775 Y
Y = C + I
= 25 + 0,775 Y + 20
   = 45 + 0,775 Y
Y – 0,775 Y = 45
0,225 Y   = 45
Y = 45/0,225
Y = 200
So National Income Balance a number of Rp.200 Billion.

2. To Equate between leakage(S) with Injection (I)
S = I
C = 25 + 0,775 Y
S  = ‐a + ( 1 – b ) Y
    = ‐ 25 + 0,225 Y
S = I
‐25 + 0,225 Y   = 20
0,225Y = 45
        Y = 45/0,225
        Y =  200


3. To Equate magnitude Balance Consumption (C eq)
C = 25 + 0,775 Y
Because Y= 200, then
C = 25 + 0,775 (200)
    = 25 + 155
= 180
So balance consumption a number of Rp.180 Billion.

4. To Equate magnitude Balance Savings(S eq)
S = ‐25 + 0,225 Y
Because   Y = 200 then
S = ‐25 + 0,225 (200)
   = ‐25 + 45
   = 20
So balance savings a number of Rp.20 Billion.

Y = E Sc=‐a+(1‐b)Y S = S EI

C1+C2+I CEI=C1+C2 l = l0
C 1 20 ‐25 ‐25 45 45 20
C 2 45 0 0 120 120 20
C 3 120 20 20 180 150 20
C 4 180 45 25 195 185 20
To resize chart data range, drag lower right corner of range.

‐50
0
50
100
150
200
250
0 1 2 3 4 5
Series 1
Series 2
Series 3
Series 4
Series 5
Series 6

Audit Int 04

More Related Content

What's hot (19)

Viewers also liked (11)

Similar to Audit Int 04 (20)

Audit Int 04