Difference between E-Business and E-Commerce

Difference between E-Business and E-Commerce
E-Business and E-Commerce: Definition, Relationships, Advantages, Differences and Examples: Are transactions that are used without exchanges or physical contacts and transactions are conducted electronically or digitally, something is made possible by the rapid development of digital communication.

Definition of E-Business and E-Commerce
The prefix "E" is "electronic", which means activities or transactions that are used without exchange or physical contact. Transactions are held electronically or digitally, something is made possible by the rapid development of digital communication.

Understanding and History of E-Business
E-business or electronic business can be defined as activities related directly or indirectly to the process of exchanging goods or services by utilizing the internet as a medium of communication and transactions. E-business is also one of the applications of internet technology that penetrates the internal business world, encompassing systems, customer education, product development and business development.

The definition of e-business according to IBM is a safe, flexible and integrated approach to provide different business values by combining the systems and processes that run key business operations with the use of internet technology. From the concept that was popularized by IBM, eventually many large software companies participated in developing e-business services including the big four (IBM, Oracle, SAP, and Microsoft). The e-business services that they have developed have been integrated in a product package, including: IBM Business Solutions, Oracle Business Intelligence, SAP Business Suite and Microsoft Dynamics.

The concept of e-business is motivated by the crisis experienced by IBM that eventually replaced its CEO in 1993. The rapid growth of the internet starting in the mid-1990s, made many see it as a golden opportunity that could make the company superior, but many who have not been able to take advantage of the situation.

Seeing the circumstances that could change the way companies work, finally in 1995 Louis Gerstner, the CEO of IBM at that time managed to overcome the financial crisis experienced by IBM and scheduled how to make the internet become a useful business-to-business tool, with Dennie Welsh as Head of Integrated Systems Services Corporation (a subsidiary of IBM) at the time, and Marketing Executive John Patrick who had the same perception with him.
To handle the big plan, Gerstner finally formed the Internet Division under the leadership of Irving Wladawsky-Berger, with his task of formulating and launching the company's internet strategy in all business units. So in the fall of 1997, Louis Gerstner through IBM campaigned for marketing that was very creative to encourage and provide services so that every company could implement e-business and utilize the internet as business value.

The Role of Entrepreneurship in the Economy and National Development

The Role of Entrepreneurship in the Economy and National Development
The Role of Entrepreneurship in the National Economy
The Role of Entrepreneurs in the Economy and National Development - Entrepreneurs play an external or internal role. Externally, the entrepreneur acts as a provider of employment for job seekers. With the employment of existing employment opportunities, which have been provided by entrepreneurs, the national unemployment rate will be even less.
And internally the entrepreneur in reducing the level of dependence on others, can increase self-confidence, and increase purchasing power to the culprit.
With the decline in the unemployment rate can have a positive impact on the increase in income per capita and people's purchasing power, and the growth of the national economy. In addition, the growth of the per capita economy can impact the fall in crime that is usually caused by high unemployment.

Entrepreneurs have a very high role in doing entrepreneurship. The role of entrepreneurs in the country's economy, namely:
Creating jobs
Reducing unemployment
Increase community income
Combine the factors of production (nature, labor, capital and expertise)
Increase national productivity
national economy

The role of the entrepreneur in developing the national economy
Economic development is a process that causes the income per capita of the community to increase. Factors that influence economic development in developing countries. The goal in economic development is to increase national income and productivity. Factors that influence this in developing countries are:
Capital
Available manpower
Real natural resources (natural resources)
Technology and entrepreneurship
Socio-cultural characteristics of the community
The breadth of the market

The economic system used.
The labor and capital factor is an input which directly influences the amount of output. While the last five factors are inputs which indirectly affect the amount of output through capital gains.
Entrepreneurship can be interpreted as the concept of the ability to create something new and different to produce added value but by having the courage to face risks or uncertainties. Things that encourage attention to entrepreneurship, because research in various countries that have developed innovations and job opportunities related to establishing small and medium-sized businesses commonly called venture ventures.
Attention to entrepreneurs, namely as a creator of new job opportunities, new innovations, new income, new tax payments, all of which are referred to as sources of economic growth have also spread to developing countries.
In the development of developing countries where the development of entrepreneurs is still in the initial stages which have become obstacles in the country's economic growth. The status of development only requires the formation of capital (from within and outside the country) and also requires the formation of new entrepreneurs.

State Budget Planning and Budgeting

State Budget Planning and Budgeting
Economic growth,
Nominal gross domestic product,
Y-o-y inflation,
The average SPN interest rate is 3 months,
The exchange rate of the rupiah against the US dollar,
Oil price (USD / barrel),
Oil production / lifting (MBPD),
Gas Lifting (MBOEPD),

Other indicators:
Of the population
From income per capita
From poverty level
From the unemployment rate

APBN cycle
The Budget Cycle (APBN) is a series of activities in the budgeting process starting when the unified state budget follows up on budget calculations authorized by law. There are 5 main stages in the budget cycle in Indonesia.
Of the five phases, phases 2 (second) and 5 (five) are not by the government, namely the determination of each phase / budget approval carried out by Parliament (legislative), and the fifth phase and accountability of audits carried out by the Supreme Audit Board (BPK). While the other phase is carried out by the government. The stages of the budget cycle activities are as follows:

State Budget Planning and Budgeting
This stage was carried out in the previous year by implementing a budget (APBN) for example: for the 2014 state budget which was carried out in 2013, which included two activities, such as planning and budgeting. From the planning stage:

Formulation of policy directions and national development priorities
Ministry of State / Institution (K / L) to evaluate the implementation of programs and activities in the current year, planning new initiatives and indicative budget needs.
The Ministry of Planning and the Ministry of Finance evaluate the implementation of ongoing programs and activities and review proposed new initiatives based on development priorities and fulfill the indications of feasibility and efficiency of the analysis.
APBN Determination / Approval
Budget determination / approval activities are carried out in phase-1, around October to December. The activity in this phase is the discussion of the draft budget and the draft budget law, and adoption by Parliament. Furthermore, based on the approval of the DPR, the draft APBN Law is determined to be the APBN Law. The determination of the APBN Law is followed by the establishment of a Presidential Decree on the detailed budget as an attachment to the APBN Law.

State Budget Implementation
If in phases 1 and 2 carried out in t-1 APBN, APBN implementation activities are held from 1 January to 31 December in the current year (APBN t). In other words, the implementation of the 2014 fiscal year will be carried out from 1 January 2014-31 December 2014. The activities of the budget implementation by the government in this case are ministries / agencies (K / L).

APBN Reporting and Recording
Budget reporting and recording stages are held in conjunction with the budget implementation phase, January 1 - December 31. Government financial reports are produced by the accounting process, and are presented in accordance with government accounting standards consisting of Budget Realization Reports (LRA), Balance Sheet and Cash Flow Reports, and notes to financial statements.
The Business Entity is defined as a structured organization in managing the factors of production for profit. Another understanding Business entities in the book Competent Economy are juridical and economic entities that use factors of production to produce goods and services with the aim of making a profit.
Whereas the Company is an activity unit that carries out the management of production factors to provide goods and services for the community, distribute them, and make other efforts to obtain benefits and satisfy the needs of the community. There are several forms of business entities, among others, State-Owned Enterprises (BUMN), Private-Owned Enterprises (BUMS), Regional-Owned Enterprises (BUMD), and mixed business entities

Understanding of the State Revenue and Expenditure Budget

Understanding of the State Revenue and Expenditure Budget
State Budget (APBN) - Namely stands for state budget. In its scope there are two views, namely in the narrow sense and broad meaning. In the narrow sense is all state budget revenues, expenditure, and state financing, which in this case is defined as the government or state. Now, if in a broad sense it is added in the form of separated state assets.

State budget
Understanding of the State Revenue and Expenditure Budget
The annual financial plan of the Indonesian government approved by the House of Representatives (DPR). List of budgets containing systematic plans and detailed receipts and expenditures for the fiscal year (January 1 - December 31). The budget, changes in the state budget, and accountability of the state budget each year are determined by law.

Basic Law of the State Budget
The 1945 Constitution is the highest legal basis in the legal structure in Indonesia. Therefore, regulations regarding state finances are always based on this law, especially in chapter VIII of the 1945 Constitution Article Amendment IV 23 regulating the state budget (APBN).

APBN Structure
State Revenues and Grants,
State Shopping,
Primary Balance,
Budget Surplus / Deficit,
Financing.
 
APBN Function
The budget is an instrument to regulate state expenditure and income in order to finance governance and development, achieve economic growth, increase national income, achieve economic stability, and determine the direction and priorities of development in general.
Budget authorization, planning, supervision, allocation, distribution and stabilization functions. All revenues and expenditures are correct that state duties in the given fiscal year must be included in the budget. Surplus income can be used to finance the state budget for the next fiscal year.
The authorization function, implies that the state budget is the basis for implementing revenue and expenditure for this year, thus, spending or revenue can be accounted to the public.
The planning function, implies that the state budget can be a guideline for the state to plan activities for this year. When spending is pre-planned, the country can make plans to support spending. For example, it has been planned and budgeted to build several billion road construction projects. Thus, the government can take action to prepare the project to run smoothly.
The oversight function, means that the state budget must be a guideline for assessing whether the activities of implementing the government of the country are in accordance with the stipulated provisions. Thus it will be easy for people to judge whether the government's actions to use state funds for certain purposes are justified or not.
The allocation function, means that the state budget must be directed to reduce unemployment and waste of resources and increase efficiency and effectiveness.
Distribution function, means that the state budget policy must take justice and propriety.
The stabilization function, which means that the government budget is a tool to maintain and work for the balance of economic fundamentals.

Basic Macroeconomic Assumptions of APBN
Basic macroeconomic assumptions are very influential on the magnitude of components in the APBN structure. The basic assumptions are:

Description of Domestic Investment Business Entity

Description of Domestic Investment Business Entity
Domestic investment
Domestic Investment or abbreviated (PMDN) is an investment to conduct business in the territory of the Republic of Indonesia which is carried out on domestic investors using domestic capital.
Provisions for Investments are regulated in Law No. 25 of 2007 concerning Investment.

Understanding
Domestic Investment (hereinafter referred to as "PMDN") pursuant to Article 1 of Law Number 25 Year 2007 concerning Investment ("UUPM"), investment activities to conduct business in the territory of the country, which are made by domestic investors using capital in country. The definition of a domestic investor is an individual Indonesian citizen, an Indonesian business entity, the Republic of Indonesia, or an investment area in the Republic of Indonesia. Indonesian business entities intended here may form a limited liability company ("PT").
Based on Article 5 paragraph (1) of the Capital Market Law, it explains that investment in the country can be carried out in the form of a business entity, a legal entity, not a legal entity, or an individual, in accordance with the provisions of the law. Article 5 (3) further explains the Capital Market Law, domestic and foreign investors who invest in PT is done by doing the following:
take part in shares at the time of establishment of a limited liability company;
buy shares; and
do other ways in accordance with the provisions of the legislation


Description
Domestic investors can be carried out by individuals, State business entities and / or the government itself making investments in the territory of the Republic of Indonesia. Business activities or types of business open for investment activities, except business fields or types of business that are declared closed and open with the requirements and restrictions on ownership of the State assets of business transfer from companies are regulated in Presidential Regulation Number 36 Year 2010 concerning List of Changes in Closed and Open Business Sectors Business with requirements in the Investment or Investment Sector.

Special Facilities for PMDN
A fundamental difference in ordinary PT domestic investment companies and domestic investment to get facilities from the Indonesian government in operations where facilities are not acquired by ordinary PT. Based on Article 18 paragraph (2) of the Capital Market Law, it is clear that investment facilities can be provided to investors:
Investment in South Sumatra Reaches IDR 15.90 Trillion Until End of 2015
Investment in South Sumatra Reaches IDR 15.90 Trillion Until End of 2015
expand business; or
make new investments.

Furthermore, Article 18 paragraph (4) of the Capital Market Law describes the form of facilities provided by the government to investors, including domestic ones, to be able to:
Income tax through reduction of net income to a certain level of investment made within a certain time;
Exemption or relief of import duty on capital goods, machinery or equipment for production purposes that cannot be produced domestically;
Exemption or relief of import duty of raw materials or supporting materials for production needs for a certain period and certain requirements;
Exemption or suspension of Value Added Tax on the import of capital goods or machinery or equipment for production purposes that cannot be produced domestically for a certain period of time;
Depreciation or amortization; and
Land and building tax breaks, especially for certain sectors, in certain regions or regions or regions.

PMDN Ratification and Licensing
Pursuant to Article 25 paragraph (4) of the Capital Market Law, corporate investors, including domestic ones, who will carry out business activities are required to obtain a permit in accordance with the provisions of the legislation from an authorized agency. License as previously stated was obtained through a one stop service. The single service counter is intended to assist investors in obtaining ease of service, fiscal facilities, and investment information, both domestic investment and foreign direct investment.

Weaknesses in Commercial Commerce

Weaknesses in Commercial Commerce
Misunderstandings or disputes between partners and partners will make the commercial design and travel and may lead to the dissolution of the partnership.
Liabilities that are usually not limited will cause individuals / partners to lose their personal assets if the business faces problems in paying back its debts.
The mistakes of a joint venture partner will bind the partners of other joint ventures. This is because each partner has the same responsibility for the partnership. All losses will be borne together even if caused by only a joint venture partner.
Commercial partnership is impermanent. If a joint venture partner becomes unconscious, bankrupt or dies, the partnership may have to be dissolved.
Capital accumulation is still limited in the environment of a maximum of 20 people. Then the development of commerce is dependent on this limited source of capital.

The characteristics of partnership trade are
Kongi Partner Ownership
the partnership is defined as the relationship between two or more people who carry out joint commerce to obtain profits.
joint venture partners are in the environment of 2 to 20 people (generally).
for a bank or stock broker partnership, the number of partners does not exceed 10 people.
for partnerships involving professions such as lawyers and akauntans, partnerships do not exceed 50 people.
a trip to a partnership is stipulated under the 1961 Agreement Act.
The commercial trade was also conquered under the 1956 Commerce Registration Act.
Kongi's colleague

may be written orally.
usually forming a joint agreement in the form of a partnership agreement called a partnership agreement to avoid disputes.
The contents of the agreement include the name of the firm, the names of all partners, types and places of trade, profit / loss sharing ratio, allocation of rights and responsibilities of the partners, how to run the trade and how the partnership will be finalized.
a partnership may be without agreement but it is subject to conquest in the 1961 Agreement on Deed.
Also Read Articles That May Be Related: Definition of Trading Commodities - Characteristics, Type, Fuel, Industry

Basic Forms of Business Ownership
Even though the forms of business ownership vary by country, there are several forms that are considered common, such as:

Private company
A private company is a business that has ownership in one person. Individual company owners have unlimited responsibility for company assets. In a sense, if the business suffers a loss, the owner is obliged to bear all the losses.

Partnership
Partnership is a business where two or more people work together to operate the company as profit income. As with an individual company, each partner (member of the alliance) has unlimited responsibility for company assets. And a partnership company can be divided into two, namely limited partnership and firm.

Company
The company is a business whose ownership is held by several people and overseen by a board of directors. Each owner has limited responsibility for company ownership.

Cooperative
Cooperative is a business whose members are legal entities of cooperatives or people by basing their activities on the principle of cooperatives and at the same time as a people's economic movement that has a family principle. Cooperatives have a goal as a welfare of its members. The main characteristic of cooperatives is to differentiate other business entities, namely cooperative members have multiple identities, meaning that cooperative members are owners and users of cooperative services.

Goodness of Commercial Business

Goodness of Commercial Business
Among these are the name of the partnership, the location of the trade, the number and name of the work, the activities of the trade carried out, where the records of the accounts are stored, the administration or collection of power in the partnership, the determination of the level of profit or loss, the designation and take-up of the workload and the level of benefits imposed, capital contribution for each workplace, allotment of the value of capital, salary for workers involved in the daily business affairs, assets of the partnership, police perakaunan followed, perakaunan life period, the field of power of officials, the field of authority, salary, bonuses and the status of Pekongsi.
In addition, there is also an agreement without agreement in which the dealings of an agreement are made based on Section 26 of the Deed of 1961 Pekongsi.
Letter of Subsection 26 of the Deed of Divination explains that the partnership is sharing equally on the gains or losses of the partnership, each claim is entitled to receive 8% benefit a year and more than the introduction, the loan given to the trading partnership and the worker is entitled to benefit from the capital only after the profit is determined.
Besides that, every worker has the right to take care of commerce. However, no salary is given even though the worker is involved in daily business affairs. A worker is also not accepted without the approval of all workers. In this section, it is also written that the decision of the majority is accepted if the form of change is related to commerce, but if the partnership wants to change trade activities, unanimous decision (100%) must be obtained, and the books and records of the association are kept on the premise of the trade. Each worker has the right to check and make copies of these records. If the contract does not make any agreements or if the agreement is made but does not cover certain cases, the allotment in the Deed of Agreement relating to the cases above is used. A partnership only needs to report the financial statement to the Domestic Results Institute (LHDN) for the purpose of estimating excise duty. Accounts for a partnership do not need to be audited. Every employee may not open the same trade as the trade carried out by the partnership. Section 32 of the 1961 Agreement Deed devoted to the Pekongsi carrying out the same trade as the partnership needing to pay for the sharing of all profits.

Goodness of Commercial Business
More capital can be collected.
Can use expertise from joint partners who are likely to have different skills, knowledge and experience.
The specialization of work can be done with the existence of various skills and expertise from the partners' partnerships.

Business risks can be spread (shared) between joint partners.
Competition can be reduced through partnership, with that shopping for competition can be allocated to increase sales and develop commerce.
Partnerships are still easier to establish than companies or cooperatives. It only needs to be registered with the Registrar of Commerce and get trade license from the local authorities.