Choirunnisa Choirunnisa, Muhammad Iqbal Fasa, Sania Nuraziza

An Islamic Economic Review of the Determinants of Labor Absorption in Indonesia from 2014 to 2023

Introduction

An islamic economic review of the determinants of labor absorption in indonesia from 2014 to 2023. This Islamic economic review studies labor absorption in Indonesia's tourism sector (2014-2023). It analyzes how foreign tourist visits & hotel occupancies impact employment.

Abstract

This study aims to measure and indentify how the Number of Foreign Tourist 5 ASEAN Countries, namey Brunei, Malaysia, the Philippines, Singapore, and Thailand) and the Number of Hotel Occupancies affect the Number of labor Absorption in the Tourism Sector in Indonesia in 2014-2023. The type of research used in this study uses a quantitative approach with a panel data analysis method. The result of the study indicate that Foreign Tourist Visits have a negative and insignificant effect on Labor Absorption in the Tourism Sector in Indonesia, the Number of Hotel Occupancies has a negative and significant effect on Labor Absorpation in the Tourism Sector in Indonesia. The variables Number of Foreign Tourists and Number of Hotel Occupancies together have a significant effect on Labor Absorption in the Tourism Sector in Indonesia.

Review

The study, "An Islamic Economic Review of the Determinants of Labor Absorption in Indonesia from 2014 to 2023," investigates the impact of foreign tourist numbers from five ASEAN countries and hotel occupancies on labor absorption in Indonesia's tourism sector. Employing a quantitative approach with panel data analysis over the specified period, the research aims to identify key drivers of employment in this crucial sector. The abstract presents a surprising set of findings: foreign tourist visits are reported to have a negative and insignificant effect, while hotel occupancies show a negative and significant effect on labor absorption. Interestingly, the two independent variables, when considered together, are found to have a significant joint effect. This research topic is highly relevant for policymakers in Indonesia, particularly given the importance of the tourism sector for economic development and job creation. The study's use of panel data analysis is appropriate for examining trends and relationships across multiple entities and years, offering a potentially robust analysis. The focus on specific ASEAN tourist origins and hotel occupancy as direct proxies for tourism activity is a sensible approach for understanding a specific segment of the tourism market. However, a significant concern arises from the title's claim of an "Islamic Economic Review" which is entirely absent from the abstract's methodological description and reported findings. There is no mention of how Islamic economic principles inform the theoretical framework, variable selection, model specification, or interpretation of results. This omission raises fundamental questions about the scope and actual execution of the study. Furthermore, the reported negative effects of both foreign tourist visits and hotel occupancies on labor absorption are counter-intuitive from a conventional economic perspective, as increased tourism activity is generally expected to boost employment. For this study to fulfill its stated objective and enhance its scholarly contribution, several key revisions and elaborations are necessary. Primarily, the "Islamic Economic Review" aspect must be concretely integrated throughout the paper. This could involve exploring concepts like *maslahah* (public interest), *adl* (justice), or the ethical dimensions of labor and wealth distribution within the tourism sector, and how these principles might influence the selection or interpretation of variables. If the study does not genuinely engage with Islamic economic principles beyond a nominal title, it should be re-titled to accurately reflect its purely econometric analysis. Second, the counter-intuitive negative findings require a comprehensive and well-substantiated discussion. This should include potential explanations such as the growth of high-skill/low-labor-intensive tourism, increased automation, or shifts in the informalization of labor not captured by official statistics, along with a critical examination of the data and methodology. Greater precision in terminology, such as consistently defining "labor absorption" and clarifying whether "Number of Foreign Tourist" refers to arrivals or expenditure, would also strengthen the paper's clarity and rigor. Significant revision is required to address these fundamental issues.

Full Text

Comments

You need to be logged in to post a comment.