Abstract:This study aims to apply the model Principal component Analysis to reduce multicollinearity on variable currency exchange rate in eight countries in Asia against US Dollar including the Yen (Japan), Won (South Korea), Dollar (Hongkong), Yuan (China), Bath (Thailand), Rupiah (Indonesia), Ringgit (Malaysia), Dollar (Singapore). It looks at yield levels of multicolinierity which is smaller in comparison with PCA applications using multiple regression. This study used multiple regression test and PCA application to investigate the differences in multicollinearity at yield. From this research, it can be concluded that the use of PCA analysis applications can reduce multicollinearity in variables in doing research.

Purpose This study aims to analyze the variables that affect residential real estate demand by millennials based on hedonic demand functions. Design/methodology/approach The method of analysis in this study is robust regression ordinary least square using cross-sectional data from Indonesian Family Survey Wave 5 (IFLS-5) with a sample of 1.672 households of male married millennials. Findings The aspect of millennial generation characteristics is significant on the variables of income, number of dependents, education level and presence of millennial generation in urban and rural areas. While the variable of age of the millennial generation does not significantly influence expenditure for residential real estate. All aspects of the millennial generation’s spending behavior consisting of spending on food consumption, education, health, telephone and internet, transportation, recreation and the variable of the presence of urban and rural millennial generations significantly affect the spending of the millennial generation for residential real estate with the assumption of ceteris paribus. Research limitations/implications The implication of this study brings together the characteristics of the millennial generation with the aspect of behavior to expenditure for residential real estate assets relevant to the needs of the housing microfinance market. Practical implications In this study, it was found that the character and behavior of the millennial generation towards spending on residential real estate can be factors in determining policies by both the government and financial institutions that will serve the millennial generation through housing microfinance. Social implications This implication study, it was found that the needs and behavior of the millennial generation towards the demand for housing microfinance principles according to their character and behavior. Originality/value The difference between the results of this study and previous studies is possible because previous studies did not differentiate the unit of analysis for the millennial generation.

The performance appraisal of financial institutions is generally measured by using financial ratio indicators. Sharia microfinance institutions are institutions that have been developed by both the Government and the society which have economic and social functions. Social functions that are grown from belief values will have a long-term impacts, both consistency and sustainability. Exploring social values based on Sharia principles is needed to make the operational basis for Islamic microfinance institutions more measurable, both in financial performance and social performance.There are three principles in evaluating the performance of Islamic microfinance institutions, namely (1) the principle of fairness, (2) the principle of honesty, and (3) the principle of partnership. These three principles are the basis for operationalizing LKMS, both in product development, services and corporate governance.Key words:  Dimension, Sharia financial principle, Micro finance, fairness, honesty, partnership.

SUMMARY More recently, significant fluctuations in the Indonesian economy justify the need to pay more attention to this issue. In this case, the main purpose of this research is to know the relationship between two issues related to Indonesian macro economy called consumption and GDP for data period during 1967 until 2014. This study investigates the relationship between GDP variables and Indonesian consumption consumption variables using the test ARDL, cointegration and Granger causality. The result of the research can be concluded that, there is long-run equilibrium relationship between GDP and consumption with long-term ARDL model, 10% change of consumption will produce long-term change of 44% in GDP. It is not surprising that there is no short-run equilibrium relationship between GDP and consumption. 10% of consumption will result in a short-term ARDL model change of 95% in GDP. The variables and consumption of GDP are cointegrated in the long run significantly at lag interval 10, whereas the use of lag interval 1 and 5 is not credited in the long run. Using a cointegration test with lag interval 1, 5 and 10 indicates significant for all usage slowness. So it can be summarized in the context of GDP and coordinated short-term economic consumption for all the prevailing interval lags. concluded that long-term causality test results between GDP variables and significant consumption with time intervals 5 and 10. intervals 1, 15 and 20 have no long-term causality relationship between GDP variables and consumption variables. a short-term causal model. With lagging intervals of 1, 5, 10 and 15, there is a short-term causal relationship between the variable GDP and consumption. As for the use of delay interval 20 there is no causal relationship in the short term between the variable GDP and consumption in Indonesia.

This study aims to investigate macro-economic variables on the financial ratios of Islamic banks in Indonesia, using simultaneous impulse response function (IRF) and forecast error variance decomposition (FEVD) analisys. The object in the sample research is one of the Islamic banks in Indonesia, namely the bank muamalah. The data used in this study consists of 4 macroeconomic variables of Indonesia and 4 variable ratio of Islamic banks in Indonesia. From the research that has been done macro economic variable response is still very volatile in the first month until month 10, positive and negative response (up and down) since the occurrence of shock or shock to the variable banking sector. Next, from the 9th to the 10th month the fluctuations begin to shrink meaning that the macroeconomic variables are no longer very volatile like the previous period. By using Impulse Response (ROA) in the results that in the first period of variable banking ROA ratio is strongly influenced by FDR shock (12.6%) while the period of the period of shock ROA and other variables still not give influence.