International Journal of Business, Law, and Education

The Role of Return on Equity in Moderating the Effect of Current Ratio on Debt to Equity Ratio in Pharmaceutical and Healthcare Companies

Zulkifli Zulkifli

The pharmaceutical and healthcare industry in Indonesia is facing increasing demand for healthcare services, the need for digital transformation, and a high dependence on imported pharmaceutical raw materials, all of which increase corporate financing requirements. This study aims to analyse the effects of liquidity and profitability on capital structure and to examine the role of profitability as a moderating variable in the relationship between liquidity and capital structure among Pharmaceutical and Healthcare Resources companies in Indonesia. This research employed a quantitative approach with a causal research design. The study population consisted of 13 companies, of which 10 companies were selected using a purposive sampling method during the 2021–2024 period. Data were analysed using panel data regression through the Moderated Regression Analysis (MRA) approach. The results indicate that the Current Ratio (CR) and Return on Equity (ROE) partially have a negative and significant effect on the Debt-to-Equity Ratio (DER). Furthermore, ROE is proven to positively and significantly moderate the effect of CR on DER. These findings theoretically extend the perspective of the Pecking Order Theory and provide practical implications for corporate management in making optimal financing decisions, while also serving as a consideration for investors in making investment decisions

Digital Leadership, Knowledge Management, and Employee Performance

Holy Arif Wibowo

Public-sector digital transformation is often framed as a technological modernization project, yet recurrent difficulties in government digitalization indicate that leadership capability, knowledge governance, and employee engagement are equally decisive. This study examines the effects of digital leadership and knowledge management on employee performance, and tests employee engagement as a mediating mechanism, in a knowledge-intensive public health policy organization in Indonesia. A quantitative cross-sectional census survey was administered to all 56 employees of the Center for Health System Resilience Policy (Pusjak SKK), Ministry of Health of the Republic of Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4. The measurement model satisfied convergent validity, discriminant validity, and internal consistency criteria, with indicator loadings above 0.70, average variance extracted values above 0.50, and heterotrait-monotrait ratios below 0.90. The structural model explained 65.2% of the variance in employee engagement and 74.4% of the variance in employee performance. Digital leadership and knowledge management had positive and significant direct effects on employee engagement and employee performance. Knowledge management was the strongest antecedent of engagement (β = 0.580, p < 0.001), while employee engagement was the strongest direct predictor of performance (β = 0.475, p < 0.001). The indirect effects of digital leadership and knowledge management on performance through engagement were also significant, indicating partial mediation. The findings suggest that digital capability in public bureaucracies produces performance gains not only through systems and infrastructure, but through engaged employees who are able to convert digital vision and organizational knowledge into policy-relevant work. The study contributes to the integration of Dynamic Capabilities Theory, the Knowledge-Based View, and Job Demands-Resources Theory in explaining performance in knowledge-intensive public organizations in the Global South.

Collection Development of Library Materials at Universitas Pendidikan Nasional

Ni Made Merlina Dwi Heriani

Purpose: This article examines the stages of library-material collection development implemented at the Universitas Pendidikan Nasional (Undiknas) Library in Denpasar, Bali. Design/methodology/approach: The study uses a descriptive qualitative single-case design. Data were obtained through direct observation, structured interviews with the head librarian, library staff, and students, and document analysis of collection records, development procedures, and institutional policy documents. The analysis was organized through data reduction, thematic coding, cross-source comparison, and interpretation using the collection development cycle proposed by Evans and Saponaro. Findings: Collection development at the Undiknas Library is implemented through six interrelated stages: user-needs analysis, policy orientation, selection, procurement, weeding, and evaluation. The library has built a hybrid collection consisting of printed books, theses, textbooks, magazines, e-books, and institutional digital repository materials. The findings show that collection decisions are strongly shaped by curriculum relevance, lecturer and student requests, donations, grants, and borrowing statistics. However, the study also identifies three areas requiring strengthening: the formulation of an internal written collection development policy, more sustainable acquisition funding, and more systematic evaluation of digital and print collections. Originality/value: The article contributes case-based evidence from an Indonesian private university library and demonstrates how international collection-management theory can be operationalized in a local institutional context.

Digital Marketing Strategies For MSMEs In Improving Competitiveness In the Industry 4.0 Era

Mochammad Fahmi

Digital marketing has become an important strategy for Micro, Small, and Medium Enterprises (MSMEs) to improve competitiveness in the Industry 4.0 era. This study aims to analyze the effectiveness of digital marketing strategies in supporting MSME business growth. The research employed a systematic literature review approach by examining relevant studies on digital marketing implementation in MSMEs. The findings show that the use of social media, search engine optimization (SEO), digital content marketing, e-commerce, and online marketplaces positively influences brand awareness, customer engagement, and sales performance. Effective digital promotion and marketplace utilization help MSMEs expand market reach and strengthen their competitive position. The study concludes that digital marketing is a key factor in achieving sustainable competitive advantage and business growth. Strengthening digital capabilities and technology adoption is essential for improving MSME performance in a rapidly changing business environment.

LEGAL PROBLEMS THAT ARISE IN IMPLEMENTING LEGAL AID IN LEGISLATION IN INDONESIA

I Kadek Rico Vergian Dinatha Dinatha

As a constitutional state, Indonesia guarantees equal standing for every citizen before the law, yet economic disparities often hinder poor communities from obtaining proper justice. Although the government has shifted the legal aid paradigm from mere pro bono humanitarian action to a state responsibility through legislation, various juridical and empirical problems in its implementation continue to emerge. This research aims to analyze legal policies regarding legal aid in Indonesia and examine the arising legal problems, using a socio-legal method with statute and fact approaches. The results indicate that legal aid regulations have evolved through state budget (APBN) support, yet unclear parameters for defining poor communities remain. Furthermore, 2024 data shows that 62.9% of the public is unaware of the existence of this service.

Regulatory Mitigation of Digital Bank-Run Risk in Indonesia's Rupiah Digital

Mochamad Ilham Fatahillah — 2026-06-29

Indonesia's development of the Rupiah Digital, the country's prospective central bank digital currency (CBDC), offers a strategic opportunity to modernise the payment system, strengthen monetary sovereignty in the digital sphere, and broaden access to central-bank money. Yet a retail CBDC also creates a distinctive financial-stability risk: a digital bank run in which depositors rapidly migrate funds from commercial bank deposits to risk-free central-bank liabilities. This article examines the urgency of regulating digital bank-run risk in the circulation of the Rupiah Digital and reconstructs an ideal regulatory model for Indonesia. Using normative legal research with statutory, conceptual, and comparative-institutional approaches, the article analyses the 1945 Constitution, the Currency Law, the Banking Law, the Bank Indonesia Law, the Financial System Crisis Prevention and Resolution Law, the Financial Services Authority Law, and Law No. 4 of 2023 on Financial Sector Development and Strengthening. The study finds five structural gaps in Indonesia's existing legal framework: the absence of retail CBDC holding limits, tiered remuneration rules, digital-run crisis protocols, CBDC-specific emergency liquidity arrangements, and ecosystem-wide cyber-risk governance. These gaps are legally significant because the Digital Rupiah's status as a direct liability of Bank Indonesia may accelerate systemic disintermediation under conditions of panic. The article proposes a five-pillar regulatory architecture comprising dynamic holding limits, tiered remuneration, statutory crisis protocols and circuit breakers, an emergency CBDC liquidity facility, and cyber-risk governance. It argues that these safeguards should be enacted at the statutory level and integrated into the Financial System Stability Committee framework before full public deployment of the Rupiah Digital.

The Administrative-Law Consequences of Fraudulent Diplomas in the Appointment of Civil Servant Candidates in Indonesia

Jihan Virgia Mahalidia

This article examines the administrative-law implications of using fraudulent diploma documents in the appointment of Civil Servant Candidates (Calon Pegawai Negeri Sipil, CPNS) in Indonesia. The central problem is not merely whether the diploma is false, but whether a State Administrative Decision (Keputusan Tata Usaha Negara, KTUN) appointing a CPNS remains valid when it was issued on the basis of educational credentials that later prove unlawful. Using normative legal research, the article applies statutory and conceptual approaches to Indonesian civil-service law, government-administration law, and doctrinal principles of administrative validity. The analysis demonstrates that a diploma in CPNS recruitment functions as a substantive requirement for proving educational qualification under the merit system, rather than as a purely formal administrative attachment. A fraudulent diploma therefore contaminates the factual basis of the appointment decision and creates a substantive defect in the decision-making process. Nevertheless, under the principle of presumptio iustae causa, the appointment decision remains effective until it is revoked or annulled by the competent authority or by a court. The Personnel Supervisory Officer (Pejabat Pembina Kepegawaian, PPK) may consequently correct the defective decision through revocation (intrekking) or annulment (vernietiging), subject to legality, carefulness, due process, and reasoned decision-making. The article further argues that administrative sanctions, including dishonourable dismissal where the legal requirements are satisfied, may be imposed independently of criminal forgery proceedings. The study contributes to administrative-law scholarship by clarifying the relationship between credential fraud, substantive defects, and the legal continuity of public-employment appointment decisions.

Strategi Pemasaran Digital untuk UMKM dalam Meningkatkan Daya Saing di Era Industri 4.0

Mochammad Fahmi

Digital marketing dipahami sebagai penerapan konsep pemasaran melalui

kanal digital yang memanfaatkan teknologi informasi untuk menciptakan nilai bagi

konsumen dan meningkatkan competitive advantage usaha. Teori pemasaran digital

menyatakan bahwa penggunaan media digital seperti media sosial, optimisasi

mesin pencari (SEO), konten digital, e-commerce, dan marketplace dapat

meningkatkan brand awareness, engagement, serta menciptakan pengalaman

interaktif yang berdampak pada perilaku konsumen, khususnya dalam konteks

Usaha Mikro, Kecil, dan Menengah (UMKM). Studi-studi literatur juga

menunjukkan bahwa kapabilitas digital internal dan faktor lingkungan eksternal

menjadi determinan penting dalam penerapan strategi pemasaran digital yang

efektif. Penelitian ini menggunakan pendekatan systematic literature review untuk

menganalisis efektivitas strategi pemasaran digital pada UMKM dan dampaknya

terhadap pertumbuhan penjualan. Kajian literatur mengungkap bahwa strategi

pemasaran digital termasuk pemanfaatan media sosial, marketplace, SEO, serta

konten pemasaran digital memberikan kontribusi signifikan terhadap pertumbuhan

penjualan dan kinerja pemasaran UMKM bila diimplementasikan secara

terintegrasi dan adaptif. Temuan empiris menunjukkan bahwa marketplace yang

efektif, penggunaan sosial media yang strategis, dan promosi digital yang tepat

dapat meningkatkan performa penjualan UMKM secara signifikan. Temuan kajian

ini memperkuat perspektif teoretis bahwa digital marketing merupakan komponen

strategis dalam model competitive advantage UMKM di era Industri 4.0, di mana

integrasi teknologi dengan strategi pemasaran menjadi kunci untuk

mempertahankan performa usaha dan memperluas pangsa pasar. Implikasi

penelitian ini turut menekankan perlunya peningkatan kapabilitas digital pelaku

UMKM, perumusan strategi digital yang sistematis, dan dukungan kebijakan untuk

mendukung adopsi teknologi pemasaran digital secara berkelanjutan.

Securing Access to Counsel in Mass Arrests of Protesters

Dewa Ayu Anom Wantika

Mass arrests during public demonstrations raise a distinctive due process problem in criminal procedure: the state may lawfully maintain public order, yet coercive measures must not sever arrested persons from legal assistance at the earliest stage of custody. This article examines access to counsel in mass arrests of protesters in Indonesia through the principle of due process of law and the reform of the Criminal Procedure Code under Law No. 20 of 2025 on the Criminal Procedure Code (KUHAP 2025). Using normative legal research, the article applies statutory, conceptual, and regulatory-design approaches to constitutional norms, criminal procedure, legal aid legislation, and international standards on liberty, fair trial, and early access to legal aid. The article argues that Indonesian law formally recognizes the right to legal assistance, including through KUHAP 2025 and Law No. 16 of 2011 on Legal Aid. However, these guarantees remain framed primarily for ordinary individual criminal cases and do not provide an operational mechanism for mass arrests, where identification, notification, access to counsel, and documentation occur under compressed time and high police discretion. The article therefore proposes an Emergency Legal-Aid Protocol (Protokol Bantuan Hukum Darurat/PBHD) consisting of automated custody notification to accredited legal aid organizations and oversight bodies, mandatory delay of interrogation until counsel is present or a valid waiver is recorded, and a transparent public communication channel for families and lawyers. This protocol would shift legal aid from a passive right to an enforceable state duty and would better align protest policing with due process, accountability, and the protection of constitutional rights.

Control of Essential Facilities by State-Owned Enterprises as an Abuse of Dominant Position

David Al Fath Yustino

State-owned enterprises (SOEs) occupy a constitutionally significant position in Indonesia because they are entrusted with managing sectors of production that are important to the state and affect the livelihood of the public. In many network industries, however, SOEs also control facilities that are technically, economically, or legally indispensable for competitors to enter and operate in adjacent or downstream markets. This article examines whether and under what conditions the control of essential facilities by SOEs may constitute an abuse of dominant position under Indonesian competition law. Using normative legal research, this study combines statutory, conceptual, comparative, and case approaches. It analyses Article 33 of the 1945 Constitution, Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, the SOE legal framework, the Essential Facilities Doctrine, and the Indonesian Competition Commission Decision No. 02/KPPU-I/2013 concerning PT Pelabuhan Indonesia II (Persero). The article argues that SOE control over strategic infrastructure is not unlawful per se where it is grounded in a public mandate and implemented for public-interest objectives. Nevertheless, refusal of access, discriminatory access conditions, tying access to the use of affiliated services, disproportionate access fees, and self-preferencing may transform lawful control into an exclusionary abuse where such conduct forecloses competitors or raises their operating costs without objective justification. The article proposes a five-factor analytical test: essentiality of the facility, dominance of the facility controller, exclusionary or discriminatory conduct, demonstrable anticompetitive effect, and absence of objective justification. It concludes that Indonesian law should explicitly incorporate clearer essential-facility standards and that KPPU should issue specific guidelines to reconcile SOE public mandates with competition neutrality.

International Legal Challenges in Addressing Diplomatic Defection Involving a Third State: A Normative Study of the Ri Il Kyu Case

Marcello Ardra P. S

Diplomatic relations remain one of the oldest and most institutionalised mechanisms through which states communicate, negotiate, protect national interests and maintain peaceful cooperation. The Vienna Convention on Diplomatic Relations 1961 (VCDR) codifies the core rules governing the establishment of diplomatic relations, the functions of diplomatic missions, diplomatic privileges and immunities, and remedial measures such as persona non grata. Yet the Convention does not expressly regulate the situation in which a diplomatic agent abandons his or her post in the receiving state and seeks protection or permanent relocation in a third state. Using a normative juridical method with statutory, conceptual and case approaches, this article examines the reported defection of Ri Il Kyu, a North Korean diplomat posted in Cuba who defected with his family to South Korea in November 2023. The article argues that the problem should not be described as a complete legal vacuum, because several applicable regimes already exist, including the VCDR, treaty law, human rights law, refugee law and peaceful dispute settlement under the United Nations Charter. However, these regimes are fragmented and do not provide an integrated procedure for allocating rights and obligations among the sending state, the receiving state and the third state. The article therefore proposes a specialised multilateral protocol or soft-law guideline on diplomatic defection, built upon good faith, proportionality, sovereign equality, non-intervention, non-refoulement, protection of family members, confidentiality of official materials and peaceful dispute settlement.

The Effect of Compensation and Workload on Turnover Intention Through Job Satisfaction as an Intervening Variable in Security Outsourcing at PT Putratama Satya Bhakti in the Jakarta Area

Melinda Pauziah

This study aims to determine the effect of compensation and workload on turnover intention through job satisfaction as an intervening variable among outsourcing security employees at PT Putratama Satya Bhakti Jakarta Area. The population in this study is all outsourcing security employees at PT Putratama Satya Bhakti Jakarta Area. The sampling technique used is non-probability sampling with the purposive sampling method. The sample size in this study is 93 respondents. The analysis method used is path analysis with the assistance of SPSS version 27. The results of this study indicate that compensation and workload have a positive and significant effect on job satisfaction. Furthermore, compensation does not have a significant effect on turnover intention, while workload has a positive and significant effect on turnover intention. The results of the Sobel Test also indicate that job satisfaction cannot mediate the effect of compensation and workload on turnover intention. The research findings show that turnover intention among outsourced security employees at PT Putratama Satya Bhakti Jakarta Area is more directly influenced by workload rather than through job satisfaction. High job demands and work pressure are factors that drive turnover intention, so companies need to manage workload and create comfortable working conditions to reduce employee turnover intention.