ECONOMY, EFFICIENCY, EFFECTIVENESS AND ITS RELATIONSHIP WITH AUDIT MANAGEMENT

Economy

Utilization of something of value such as cost, time, energy, or other valuable. Economic concept ensures that the cost of the inputs used in the operation of the organization can be minimized.

Efficiency

Efficiency relates to how the company conducts its operations, so that the achieved optimization of available resources. Efficiency relates to the working methods (operations). In conjunction with the concept of input-process-output, efficiency is the ratio between output and input. How big is the output produced by using a certain number of inputs owned by the company? Good working method will be able to guide the process of running operations by optimizing the use of resources of the company. Thus, efficiency is a measure of a process that connects between the input and output of the company's operations.

Effectiveness

Effectiveness is the end product of an activity (operation) which has reached its destination, both in terms of quality of work, quantity of work and deadline targets

In brief definition of effectiveness can be understood as the level of success of a company to achieve its objectives. Is the implementation of a program / ​​activity has achieved its objectives? Effectiveness is a measure of output.

input-process-output

Audit management aims to identify activities, programs, and activities that still require improvement, so that the recommendations given will be achieved improvements over the management of the various programs and activities of the company. The emphasis of the management audit is directed primarily at the various objects audits that if it can be improved in the future will come, as well as prevent the occurrence of many losses.

The management audit sees that efficiency is used as a standard assertion that the standards can be implemented to reduce the risk. Effectiveness and efficiency in a company should also look at the safety of the workers, how companies that also pay attention to their employees in order to improve effectiveness and efficiency. The decline in corporate performance is demonstrated by the achievement of corporate profits, high customer complaints, high employee turnover, and so on, an indication that the company's management needs to be improved. These issues must be resolved. Audit management through the stages of the audit, to assess accurately the process (management) that have occurred, identify weaknesses and recommend improvements for the shortage.

INFLATION RATE IN INDONESIA

In simple terms, inflation is understood as a persistent, ongoing rise across a broad spectrum of prices. An increase in prices for one or two goods alone can’t be described as inflation unless that increase spreads to (or leads to escalating prices for) other goods. The reverse of inflation is deflation.

The indicator commonly used to measure the level of inflation is the Consumer Price Index (CPI). Changes in the CPI over time are indicative of price movements for packages of goods and services consumed by the public. Since July 2008, the packages of goods and services in the CPI basket have been based on the 2007 Cost of Living Survey conducted by the Statistics Indonesia (BPS). Following this, BPS monitors price movements for these goods and services in selected cities and towns each month, using information from traditional markets and modern retail outlets on specific categories of goods and services in each location.

Other inflation indicators used in international best practice include:

1. Wholesale Price Index. The wholesale price for a commodity is the price of transactions taking place between the first wholesaler and the next largest trader for large quantities on the first market for a commodity. [More detailed explanations of the Wholesale Price Index can be found at the Statistics Indonesia (BPS) website: http://dds.bps.go.id/eng/]
2. The Gross Domestic Product (GDP) Deflator illustrates the measurement of price levels for the final goods and services produced within an economy. The GDP Deflator is derived by dividing GDP based on nominal prices by GDP based on constant prices.

The inflation rate in Indonesia was recorded at 7.75 percent in February of 2014. Inflation Rate in Indonesia is reported by the Statistics Indonesia. Inflation Rate in Indonesia averaged 11.61 Percent from 1997 until 2014, reaching an all time high of 82.40 Percent in September of 1998 and a record low of -1.17 Percent in March of 2000. In Indonesia, the consumer price index is based on a survey conducted in 66 cities. The indicator consists of 774 commodities classified into 7 major groups. Housing, water, electricity, gas and fuel constitute 25.5 percent of total weight; Food stuff - 19.5 percent and Transportation, communication and financial services - 19 percent. Prepared food, beverage, cigarette and tobacco accounts for 16.5 percent of total weight; Education, recreation and sports accounts for 8 percent; Clothing for 7 percent and Medical care for the remaining 4.5 percent. This page provides - Indonesia Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news

indonesia inflation rate

Tables and CPI Inflation in Indonesia in 2011 - 2014 by Month

BULAN	TAHUN 2011		TAHUN 2012		TAHUN 2013		TAHUN 2014
	IHK	INFLASI	IHK	INFLASI	IHK	INFLASI	IHK	INFLASI
Jan	126.29	0.89	130.9	0.76	136.88	1.03	110.99	1.07
Feb	126.46	0.13	130.96	0.05	137.91	0.75	111.28	0.26
Mar	126.05	-0.32	131.05	0.07	138.78	0.63	N.A	N.A
Apr	125.66	-0.31	131.32	0.21	138.64	-0.1	N.A	N.A
Mei	125.81	0.12	131.41	0.07	138.6	-0.03	N.A	N.A
Jun	126.5	0.55	132.23	0.62	140.03	1.03	N.A	N.A
Jul	127.35	0.67	133.16	0.7	144.63	3.29	N.A	N.A
Agt	128.54	0.93	134.43	0.95	146.25	1.12	N.A	N.A
Sep	128.89	0.27	134.45	0.01	145.74	-0.35	N.A	N.A
Okt	128.74	-0.12	134.67	0.16	145.87	0.09	N.A	N.A
Nov	129.18	0.34	134.76	0.07	146.04	0.12	N.A	N.A
Des	129.91	0.57	135.49	0.54	146.84	0.55	N.A	N.A
Tahunan		3.79		4.3		8.38

 Indonesia Core inflation Rate

Core Inflation Rate in Indonesia increased 4.57 percent in February of 2014 over the same month in the previous year. Core Inflation Rate in Indonesia is reported by the Statistics Indonesia. Core Inflation Rate in Indonesia averaged 4.66 Percent from 2008 until 2014, reaching an all time high of 8.29 Percent in December of 2008 and a record low of 3.56 Percent in March of 2010. In Indonesia, the core inflation rate tracks changes in prices that consumers pay for a basket of goods which excludes some volatile price items. This page provides - Indonesia Core Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

indonesia core inflation rate

In Indonesia, CPI inflation is disaggregated into:

1. Core Inflation, i.e. the persistent component within inflation movement, influenced by fundamentals such as

• Supply-demand interaction
• External environment: exchange rate, international commodity prices, trading partner inflation
• Trader and consumer expectations of inflation.

2. Non-Core Inflation, i.e. the inflation component marked by volatility due to the influence of non-fundamentals. The non-core components of inflation are:

1. Volatile Foods:
   Inflation predominantly influenced by shocks in the food stuffs category, such as harvests,​ Disruptions from natural events or movements in domestic food commodity prices and in

SOCIAL DIMENSION OF MONEY

The function of money in daily life as a medium of exchange is simple. Some economist introduces the definition of money as the means of payment, exchange, and debt repayment. Since money is defined as quantifiable objects in several forms of usage, then the definitions about the money usage fall under two criteria: the definition in sociological situation on the use of money and the operation that is driven by the object of money itself in its sociological context.

The standard of understanding of money is to balance a number of different materials; be it types and embodied values, for a particular purpose. The existence of the standard use is very important for elasticity in redistribution of commodity values. Money plays role in an exchange form such as barter, storage, and the management of basic needs. The operation of money usage is attached to the number of ethics determinations for various objects to prevent the manipulation, for example, the price regulation for one commodity.

Money, Individual, and Commodity

The linkage between money, individual, and community in complex relationships can be traced in George Simmel’s analysis of money in sociological context. His analysis of the individual and community relationship has contributed to the development of the theories of money that is not merely seen from the monetary aspect. Simmel’s notion about the social significance of money is an innovation in social sciences.

If money is very influential on public sociality, it should also have cultural determination. The question is how does culture determine money? According to Simmel, modern life is a rational intellectual process that does not recognize the emotional aspects in the calculation. Cultural objects replace the culture of people, and creative thinking is the subject of the reification process based on the countable size.

Intellectual process reconciles the unskilled laborer with the money which transforms an object into an exchangeable commodity. This principle finds a very extreme consciousness of metropolitan society that rational human relationships are calculated in numbers. In this culture of monetary, money and intelligence can be exchanged, cultural and communities can be purchased. In short, through money everything can be bought and interconnected and makes the world fluctuates.

Money and Market

The relationship between money usage and market establishment is very complex and has a diverse history. For example, money and the calculation of money have been gradually penetrating our everyday life through the com-modification process. The sifting of community dependency to market rather than to domestic products has made them dependent on the labor market to meet their substantial needs.

In general, the moneterization is limited to two developments: depersonalization and development of calculation and quantification. Moneterization is closely related to the broad depersonalization process that is inspired by marketization.

Definition and Social Function of Money

The sociological perspective gives the understanding that money does not only function as the means of payment, but it also a meaningful social symbol which must be analyzed. According to Simmel and Burke, for money to have social meaning, it has to be transformed into the form of commodities. By owning a luxury car made by popular automotive industry, such as BMW and Mercedes, someone is actually communicating the value of the invested money into a luxury car, representing high class taste derived from certain amount of money. Thus, money must be analyzed as the means of communication.

Money Com-modification

In complex and complicated modern society, money has established markets that no longer trade goods but forming the market to trade the value of the money itself. Money is actualized not only as transaction exchange means, but also as traded commodity.

The difference of exchange value is what the traders transact in stock exchange. On the broad-display where money is treaded, such as stock exchange and money changers, the number of money will always show the dynamic and fluctuating graphics in the selling or buying. Wall street, Dow Jones, Nasdaq, and Indonesian Stock Exchange are the market that were established from a shifting of the function of money, from a mere medium of exchange to a commodity that worth selling.