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To achieve a vision of sustainable financial well-being (FWB) in Indonesia, generating more knowledge in household behavior and FWB is pivotal. This study assesses the impact of household financial position and social comparison on individual FWB in Indonesia. Using the latest wave of Indonesia Family Life Survey (IFLS) dataset, subjective FWB assessed by questions on subjective prosperity, perceived current standard of living adequacy and perceived future standard of living. The empirical analysis shows that net wealth and total assets are also essential determinants and positively related to FWB along with income. On the contrary, though it is only found significant on the perceived current standard of living adequacy, the total debt level has a negative effect on FWB. The findings also confirm that socioeconomic and demographic factors also significantly affect FWB (e.g., being female and more educated has a positive effect on FWB). Furthermore, it also found that relative financial position (i.e., social comparison) has important roles in determining individuals' FWB level. Being above the reference group's average for a particular financial measure (i.e., income and total assets) has a positive effect on an individual's FWB. The findings of this study suggest for promoting financial education in the national school system starting senior high school to increase the level of financial well-being among young adult and people with lower educational attainment.JEL Classification C31; D14; I31

To adapt with phenomenon in industry 4.0 which disruptive technology quickly emerges and can threaten many companies, PT Telekomunikasi Indonesia Tbk (Telkom) implements internal corporate venturing by establishing Amoeba Digital Program that is lab to manage innovation by employees who form a team named Amoeba. Amoebas are incubated by adopting lean start-up methodology thus they can be considered as a start-up. They have to go through steps of innovation journey and after all the steps are passed and there is potential upscale revenue, they will become Business As Usual of Telkom. Venture B is one of Amoebas that has launched its product and generated revenues. However, recent Venture B’s revenues is decreasing, thus Venture B needs to implement new business model and needs more financing. A problem confronting Telkom as the parent company which provides the venture capital is determining the value of the venture to determine whether funding should be provided. Therefore, this research is conducted to give insight on how much the venture is really worth and how Venture B will be going in the future. Methodology used in this research is both qualitative and quantitative approach to understand the business situation and get a picture of the venture in a form of numbers or value. Combined of Damodaran and First Chicago method will be used to value the venture considering these methods can overcome issues emerged in valuing start-up company and provide better view on Venture B’s overall potential through combining the value of three different scenarios. The value of Venture B with new business model then will be compared with the value of Venture B with existing business model. From the result, Telkom can know how much Venture B is really worth which can help Telkom determine future strategy.

No abstract

In 2019, in the midst of the early stage of the digital banking industry in Indonesia Bank Arto underwent a transition and rebranded as Bank Jago, a digital bank. As a result of Bank Jago’s transition from a traditional commercial bank into a digital bank, the company’s stock reached an all-time high share price of Rp 19,000 per share in January 2022. This was the highest share price the company had ever achieved. The public’s excitement eventually subsided, however, and this resulted in a decline in the price of the company’s shares. The price per share of Bank Jago was recorded at Rp 4,200 in November of 2022, which was 77% lower than the price recorded in the beginning of 2022. This research will analyze the financial performance of Bank Jago through the utilization of financial ratio analysis, and to determine the intrinsic value of Bank Jago through the utilization of absolute valuation using the Dividend Discount Model as well as the competitiveness and environment of the Indonesian digital banking industry using PESTEL and Porter Five Forces. From the Porter Five Forces, Indonesian digital banking industry indicates a high level of competitiveness, whilst the industry itself in Indonesia through the PESTEL analysis indicates that it will continue to grow due to the level of support from the political and government factors. According to the analysis of financial ratios, Bank Jago’s profitability has increased significantly over the past three years, as indicated by the rapid growth rate of the NIM, ROE, and ROA ratios since the time of its transformation. With a ratio of 145.86%, Bank Jago displayed a level of liquidity that was unsatisfactory. According to the projections using Dividend Discount Model, Bank Jago’s intrinsic value is currently undervalued by -23%.