Losses experienced by the Indonesian government due to floods are predicted. It is because of the significance of population growth, closure of water catchment areas, and climate change in many regions in Indonesia. The government has tried to reduce the risk but faces insufficient funds. Therefore, new innovative funding sources are essential to overcome these limitations. One way to obtain it is through issuing Flood Catastrophe Bonds (FCB). Unfortunately, Indonesia has had no FCB price estimate until now. On the basis of this problem, this study aims to estimate the FCB price in Indonesia. The primary method used is the approximation method of the aggregate loss distribution. This method can compute the aggregate flood loss cumulative distribution function value faster. The FCB fair price estimation results are cheap because the risk of the instrument is significant. This significant risk is also proportional to the large return. Finally, further analysis shows that in Indonesia, the attachment point of the FCB has a relationship that is in line with the price, while the term of FCB does not. This research is expected to assist the Indonesian government in determining the fair price of FCB in Indonesia. This research can assist the investors in choosing FCB based on expected return, attachment point, and the term they want.

Demand elasticity is the sensitivity of changes in the number of goods demanded by consumers due to changes in the price of goods. This paper compares the price elasticity of demand with and without memory effect using fractional-order derivatives. This study is designed using the development theory of fractional derivatives for the economic field in determining the price elasticity of demand. The result of numerical simulation using the value of α and p indicated that the price elasticity of demand with memory effect is more accurate than without the memory effect. Furthermore, this study concluded that the price elasticity of demand does not only depend on the latest price (current price) but changes in all prices from a specific time interval. The findings of this study suggest future studies can examine the phenomenon of market equilibrium using fractional-order derivatives.

The power-law memory effect is taken into consideration in a generalisation of the economic model of natural growth. The memory effect refers to a process's reliance on its current state and its history of previous changes. However, the study that focuses on natural growth in economics considering the memory effect with fractional order-linear differential equation model is still limited. The current investigation seeks to solve the natural growth with memory effect in the economics model and decide the best model using fractional differential equation (FDE), namely Adomian Decomposition and Variational Iteration Methods. Also, this study assumes the level of consumer loss memory during a certain time interval denoted by a parameter (α). This study showed the model of loss memory effect with 0 < α ≤ 1 given a slowdown in output growth compared to a model without memory effect. Besides that, this study also found that output Y(t) is growing faster with the Variational Iteration method compared to the Adomian decomposition method. Also, using graphical simulation, this study found the output Y(t) is closer to the exact solution with α=0.4 and α=0.9. In conclusion, this study successfully solved natural growth with memory effect in economics and decided the best model between FDE, namely Adomian decomposition and Variational iterative methods using numerical analysis.

A value chain plays a crucial role in increasing production efficiency due to business uncertainty and high competition between business entities. Of these, the business must carry out the activities effectively and efficiently to achieve maximum profit. However, the study that focuses on the moderating role of the value chain in its relationship to firm performance is still limited. Thus, the present study aims to examine the effect of intellectual capital and environmental uncertainty toward firm performance and the mediating role of the value chain in the relationship between intellectual capital and environmental uncertainty to firm performance. This study was designed using a quantitative approach through an online survey. A total of 207 staff from non-financial state-owned enterprises consists of 10 clusters and 76 companies. The data were analyzed using the Structural Equation Modeling with Partial Least Square method (SEM-PLS) and assisted by statistical software, namely SmartPLS 3.3.3. The result indicated that intellectual capital and environmental uncertainty have a significant effect on firm performance. Also, this study found that a value chain moderates the relationship of intellectual capital and environmental uncertainty toward firm performance. In conclusion, this study has successfully examined the effect of intellectual capital and environmental uncertainty on firm performance—also, the role of a value chain in the relationship of studied variables. In addition, the findings of this study showed that a value chain is an important tool for companies to improve their business performance.