This research seeks to determine the influence of investment opportunity set (IOS); profitability (Return on Assets - ROA), liquidity, business risk and firm size on debt policy. We used 42 manufacturing companies registered on the Indonesian Stock Exchange (Bursa Efek Indonesia) as object research. We used purposive sampling method to determined samples, consider the period observation from 2012 to 2016, and produce 168 units analysis. Data analysis uses the multiple regressions with the SPSS tools. The results of the study found that companies’ debt policies in Indonesia are negatively affected by the liquidity. Investment opportunity set (IOS) has negative effect on debt policy. Meanwhile, ROA, Return on Invested Capital (ROIC), and firm size of a company has no impact on debt policy. These findings indicate that Indonesian manufacture companies do not see the high investment opportunity set and profitability as a policy basis for increasing debt. Moreover, the high profitability also does not cause companies to increase their debt ratio. Our study indicates that Indonesian manufacture companies use internal funds to fund their investment. This finding is a concern for creditors, as they can now see the ability of the companies, and especially their performance, in determining their credit policies.

The study examines how business conditions, demand conditions and the role of government can influence the development of batik clusters in Pekalongan. This research is expected to be able to provide recommendations for both employers and local governments in order to help in optimizing the development of batik clusters. The research applied a quantitative research by engaging multiple regression analysis as an effort to understand the effect of the relationship between independent and dependent variables. In addition, this research was conducted in three largest batik clusters in Pekalongan, Indonesia namely batik cluster of Pasindon, Kauman, and Jenggot. These results indicate that business conditions positively affect the batik clusters development. It implies that the greater both business conditions in a cluster will lead the better the development. Indeed, the demand conditions also have an impact on the cluster development. This finding remarked that demand conditions are variable that need to be considered to development of batik cluster. Lastly, Government’s role is confirmed that positively related to the Development of Batik Clusters. It implies that the more active the government’s role in a cluster will have a good impact on the development of the cluster in certain area.