Credit Interest Rates Research Articles

Credit Crunch Detection in Indonesia

This research analyzes the credit crunch phenomenon in Indonesia using the Simultaneity method. The data taken is time series data on the demand and supply side of credit. The research results show that the credit crunch phenomenon occurs from the demand and supply sides. The factors of credit demand are Credit Interest Rate (CIR) and Inflation. Meanwhile, from the supply side, namely Credit Interest Rate (CIR), Third Parties Fund (TPF), Net Interest Margin (NIM), and Non-Performing Loans (NPL). The results of research using the Two Stage Least Square approach show that, simultaneously, the variables inflation, CIR, NPL, NIM, TPF have an influence on the demand and supply of credit which triggers a credit crunch during the Covid-19 pandemic.

PENGARUH HARGA JUAL DAN SYARAT KREDIT TERHADAP PENJUALAN KREDIT PT HOME CREDIT INDONESIA CABANG SURABAYA

As the economy changes after the pandemic storm in all countries, especially Indonesia, many parties move very quickly, everyone must survive to survive, from national business corporations to small and medium class MSMEs to develop their businesses. The development of the business provides significant benefits for the company or business, which has an impact on increasing company profits. The company's goal is to sell goods to consumers and users both directly and digitally, so it is necessary to carry out effective and efficient sales. Sales usually consist of sales of goods and services, both cash and credit. Research conducted by Syarial, (2015), shows that the results of his research have a positive and significant effect on purchasing decisions, in this case researchers purchase using credit sales. The rise of credit sales in various regions both online and offline, many people from various walks of life to follow the latest trend. Technological advances have made many digital platforms appear. One that is widely used because of the convenience provided is the sales application. Because of this phenomenon, researchers are interested in examining Credit Sales at PT Home Credit Indonesia Surabaya branch studied through credit prices and credit terms. The purpose of this thesis is to find out the selling price, credit interest rate affects the credit sales of PT Home Credit Indonesia Surabaya branch, Validity test, reliability test, multiple linear regression statistical test, F test, and t test are used in this influence research, a non- experimental quantitative research method. The results found that credit sales (Y) were influenced by selling price (X1) and credit terms (X2), and both variables were influenced by credit sales (Y) if tested simultaneously.

Granting analysis of the credit financing of the platform-type highway transportation supply chain.

Against the background of digital development, this study's research object is the platform-based highway transportation supply chain. It also analyzes two modes of supply chain financial credit financing, namely, upstream, and downstream enterprises of the platform, and network freight platform as the main financing body. Notably, the financial provider sets up a transaction credit based on the principle of business truth, and closed-loop transactions, determine the upper limit of the credit line based on the principle of financing self-compensation, build the expected profit maximization model, and establish the optimal credit line. Combined with the Highway Freight Index and Logistics Prosperity Index, the dynamic early warning value is established for the financing mode, where the platform as the main financing body. Through numerical analysis, the credit line and expected profit increase with the transaction credit, expected freight volume, and credit interest rate under the two modes, and the increase deriving from the credit interest rate is more significant. Finally, this paper describes the two-dimensional credit matrix of the financing subject via transaction credit and credit interest rate, which provides an intuitive credit reference for financial institutions to conduct the credit financing of the platform-based highway transportation supply chain.

The Implementation of Holt-Winters Method to Forecast the Loan Interest Rate of Indonesia

This study aimed to anticipate the rupiah loan interest rates at commercial banks in Indonesia by employing the Holt-winters method. This study employs data on rupiah loan interest rates from commercial banks in Indonesia. The data comprises a time series element, with monthly intervals spanning from January 2013 to November 2015, which was obtained from the official website of BPS Indonesia. The study demonstrates that the Holt-winters technique yields the most accurate forecasts, as indicated by a Root Mean Square Error (RMSE) of 0.19720630. The parameters alpha, beta, and gamma, set at 0.6, 0.6, and 0.6 respectively, constitute the optimal configuration for this method. These results indicate that the Holt-winters method is an effective tool for capturing seasonality, trends, and patterns in credit interest rate data, making it a reliable choice for future loan interest rate forecasting. The findings of this study are expected to significantly contribute to strategic decision-making in the banking sector, particularly in risk management and loan interest rate strategy determination.

An Investigation of the Determinant Factors of Indonesia Domestic Investment: An Analysis of the Q1 2010 to Q4 2018 Period

The aim of this research is to investigate the impact of inflation, credit interest rates, exchange rates, and labor on domestic investment (PMDN) in Indonesia. Using secondary time series data from government institutions such as the Investment Coordinating Board, Central Statistics Agency, and Central Bank of Indonesia, the research examined these macroeconomic variables from Q1 2010 to Q4 2018. Quantitative data analysis, including multiple regression and models such as Autoregressive Conditional Heteroscedasticity (ARCH) and Generalized Autoregressive Conditional Heteroscedasticity (GARCH), was used to determine the relationship between the independent and dependent variables. The findings indicate that exchange rates and labor have a positive as well as significant impact on PMDN, while credit interest rates have a negative and significant impact. The effect of inflation on PMDN was found to be negative and insignificant. The research concludes that using the best model of E-GARCH, inflation, credit interest rates, exchange rates, and labor affect PMDN in Indonesia.

Identifying Credit Accessibility Mechanisms for Conservation Agriculture Farmers in Cambodia

As the expected cost of conservation agriculture (CA) inputs becomes an issue for farmers, financial institutions (FIs) play an essential role in promoting CA, a set of agricultural management practices with multiple positive effects. This research aimed to determine influencing factors, to rank challenges, and identify mechanisms for farmers to access agricultural credit for adoption of CA management practices in Cambodia. It was administered by conducting a survey of 242 randomly selected households for face-to-face interviews and conducting key informant interviews from purposive samples of 28 participants in Battambang and Preah Vihear provinces. The results indicated that influencing factors, including the family, adult labor and total farm size, had a positive relationship with farmers’ accessibility to agricultural credit, whereas age was negative. However, education year, farm size for main crops, on-farm income and farm experience were not significantly associated. High interest rates were the significant first-order challenge ranked, followed by document process complication, limited agricultural credit information, limited collateral security and a few other challenges. Support and improved process mechanisms to enhance credit accessibility are required to engage with multiple stakeholders, including farmers, FIs, non-government organizations (NGOs) and government officers. There has been a reduction in agricultural credit interest rates and incentives for importing CA inputs by the government, while provision of information support for agribusiness plans by NGOs which have implemented development project activities were considered as the main support mechanism. An improved process mechanism at the farmers’ level needs to include access to credit with low interest rates and a straightforward documentation process, whereas the FI level requires a business plan for lending decisions. It is evident that high lending rates hinder access to agricultural credit and the improvement of support and improved process mechanisms are necessary to better promote CA practices among farmers in Cambodia.

Strategi Pengembangan Usaha Jahit di Gampong Meutia Kota Langsa Ditinjau Menurut Ekonomi Islam

This research was conducted with the aim of determining the strategy of sewing business development in Gampong Meutia Langsa City using qualitative methods. The research location in this study is on sewing entrepreneurs in Gampong Meutia, Langsa City. The subjects studied were 6 sewing entrepreneurs and village equipment in Gampong Meutia. Data collection techniques are carried out by observation, interviews and documentation. The technical data analysis used is descriptive analysis by going through the data collection stage through the data reduction stage, presenting data and drawing conclusions. The results of this study show that the sewing business in Gampong Meutia Langsa City is run by the business owner himself, where the business owner is fully responsible for management. The management of the sewing business in Gampong Meutia is quite good and the development of the sewing business in Gampong Meutia has developed quite well compared to neighboring villages, although there are still obstacles in several fields. The obstacles faced by sewing entrepreneurs in Gampong Meutia Langsa City are obstacles in capital, namely the difficulty of obtaining additional capital, obstacles in labor, namely the owner difficulty in obtaining labor, lack in the number of workers and lack of discipline of employees and obstacles in the use of machines. The business development strategy is to ask for additional capital and the government seeks this assistance and facilitates the community so that they succeed in getting the assistance through MSME assistance by making proposals, where the proposals are made as well and attractive as possible. And promote their efforts using social media. However, in terms of getting additional capital, these entrepreneurs still use conventional banks that apply credit interest rates. While the kerdit flower in Islam is included in riba which is prohibited by the Shari'a.

Research on the evolution game of low-carbon operations in cold chain logistics considering environmental regulations and green credit

To solve the problem of insufficient low-carbon operational motivation among cold chain logistics enterprises due to the high investment costs of low-carbon assets and considering the promotional effect of environmental regulatory policies and green credit, an evolutionary game model was constructed for the government, cold chain logistics enterprises, and financial institutions. The stability strategies of each participating entity and the stability of the system equilibrium point were analyzed, and the relevant conclusions were verified through numerical simulations. The research results indicated the following: (1) the initial willingness of the three parties to participate increased, the low-carbon operation of cold chain logistics enterprises and the speed of green credit services provided by financial institutions accelerated, and the rate of strict government regulation slowed down. (2) Moderate subsidies and taxes were conducive to the joint participation of the three parties. (3) Increasing the subsidy for green credit provided positive incentives for financial institutions to provide green credit services, while reducing credit interest rates accelerated the low-carbon operation rate of cold chain logistics enterprises.

The Banking System during Crisis Times, A Global Perspective

The study aims to highlight the impact of multiple crises on developments and changes in banking systems at the global level. As banking represents the most important channel for capital allocation, globally, the topic impacts policies as well as economies. The paper presents the linkages and developments between the dependent variable credit interest rate and macroeconomic indicators used as dependent variables: unemployment, inflation, capital adequacy ratio and bank assets to GDP. The data were collected and analyzed for a relevant period, between 2013 and 2021, representing the post-financial global crisis and pandemic crisis. The sample includes 30 countries with a combined GDP of around 60% of the global GDP. According to the research results, a balanced relationship between competitiveness, profitability, and sustainability within the financial and banking sectors can be achieved through cooperation between all 30 analyzed countries. Other relevant concerns to develop viable economic policy options should focus primarily on keeping inflation rates at a stable level by the central banks, together with the efficient allocation of funds, diversification of sources of energy, and reducing dependencies.

Elasticity of Investment Financing Policy towards the Growth of Film Distribution Networks as an Effort to Redesign the Film Industry

This research aims to analyze the influence of investment financing policies on the growth of film distribution networks. Investment financing policy is seen from the aspect of setting investment credit interest rates in banking. Meanwhile, the growth of the film distribution network can be seen from the aspect of the number of cinema screens in Indonesia. This research uses several variables, such as: Investment Credit Interest Rates at Bank Persero, Regional Development Banks, National Private Banks and Foreign and Joint Venture Banks. The time range used in this research is from 2014 – 2022. This research uses quantitative methods using multiple linear regression. The explanation of the analysis results uses Keynes and Schumpeter’s theoretical approach. Based on the results of data analysis, it was concluded that the investment credit interest rate variable had a significant negative effect on the variable number of cinema screens, especially on the National Private Bank Investment Credit Interest Rate. The results of the coefficient of determination (adjusted R2) show that the influence of the number of cinema screens is 0.9492175. The higher the interest rate on investment credit, the lower the number of cinema screens.

The simultaneous effect of credit on sustainable food crop production and agricultural economic growth in Indonesia

In general, Indonesian farmers still face limited capital in their production. Therefore, credit is needed as additional capital, which is expected to help increase their agricultural business, especially rice production. This study analyzes how credit influences rice production and agricultural economic growth simultaneously. Secondary data are a time series over 12 years (2010-2021) from BPS Statistics Indonesia and Bank Indonesia. The Statistical Analysis System/Econometric Time Series (SAS/ETS) program version 9.4 is used to estimate this study using two-stage least squares (2SLS). The results show that credit simultaneously influences rice production sustainability and economic growth in the agricultural sector through credit interest rates. A simulation model that combines an increase in agricultural credit distribution of 20% and an interest rate of 5% has a greater impact on increasing rice production and economic growth in the agricultural sector compared to a simulation model that only provides a credit interest rate of 5% or 3%.

THE EFFECT OF CREDIT ALLOCATION AND LOAN INTEREST ON SMALL BUSINESS INCOME (KIF) AT KAEBAUK INVESTIMENTU NO FINANSAS (KIF), DILI, TIMOR-LESTE

The theme of this research is the effect of credit allocation and loan interest rates on the income level of small businesses in Kaebauk Investimentu and Finance, Dili, Timor-Leste. The purpose of this study was to analyze and examine the effect of credit allocation on the income level of small businesses in the Investment and Finance district, Dili, Timor-Leste and to analyze the credit interest rate on the income level of small businesses in the Investment and Finance district, Dili, Timor-Leste. Leste. leste. The hypothesis in this study explains that there is a positive and significant effect of credit allocation on the income level of small businesses in the Investment and Finance district, Dili, Timor-Leste and that there is a positive and significant effect of credit interest rates on the income level of small businesses in Kaebauk Investment and Finance, Dili, Timor- Leste. The methodology in this research is descriptive quantitative with multiple linear regression analysis tool. The results of this study indicate that there is no positive effect of credit allocation on

Probability causal inference of interest rate fluctuations: Evidence from private credit in emerging markets

Preventing risks in the private credit market is an important component of maintaining financial stability, especially in emerging markets. As loan amounts serve as both the cause and the effect of credit interest rates, through the weighted path convergence design of conditional probability and joint probability, this study establishes a probabilistic causal inference framework of loan amounts and interest rates to explore the mechanism of interest rate fluctuations in China's private credit market, market behaviour of the allocation of private loan amount, and the design of policies. The analysis provides several results. (1) The fluctuation of private credit interest rate occurred during the outbreak of the epidemic (2019Q1-2020Q1), the credit interest rate was mainly controlled by the loan amount, and the interest rate fluctuation mainly originated from private credit market behaviour. In the early stage of the post COVID-19 economic recovery (2020Q3-2021Q3), the credit interest rate is mainly controlled by non-loan amount factors, and the interest rate fluctuations occurred mainly because of the non-market behaviour of private credit, which is related to government policy support and the increase in low-interest loans from financial institutions. (2) As a result of market behaviour, for the 19.54 %–22.50 % of high interest rates on borrowing, the probability of high interest rates due to the loan amount increased by 40.48 %. (3) By policy design, reallocating the risky loan amount, the interest rate can be reduced by up to 7.36 % on a highlight-interest rate day. The reallocation of loan amounts for different security methods has varying effects on interest rates reductions, and there may even be ineffective allocations. The findings provide decision support for financial regulators in emerging markets to stabilise interest rate volatility in private credit markets.

Վերաֆինանսավորման տոկոսադրույքի տատանումների ազդեցությունը շուկայական տոկոսադրույքների վրա Հայաստանի Հանրապետությունում / Effect of Refinancing Interest Rate Fluctuations on Market Interest Rates in the Republic of Armenia

It is indisputable that the real sector of the economy requires investment, especially in the current technological age. Banks, on the other hand, possess significant financial resources, but due to insufficient, asymmetric information and the underdeveloped financial system, the interaction between the real and financial sectors is ineffective. The "late response" of the financial sector to changes in the real sector has become the cause of a chronic oversupply of financial services, resulting in a situation where the level of liquidity in banks is largely independent of economic cycles. The paper aims to identify the ways in which interest rate fluctuations impact the real and financial sectors of the RA economy and to evaluate this impact. The paper analyzes trends in the main indicators characterizing the real and financial sectors of RA, as well as the behavior of various types of interest rates according to the factors determining them. It comments on the macroeconomic developments in RA caused by interest rate fluctuations. With the help of econometric models, the study estimates the effect sizes between various links on the interest rate path. The study made it possible to highlight the problems with the transmission mechanisms of the monetary policy of RA and suggest possible solutions. As a result of the assessment, it was found that deposit and credit interest rates, interbank repo rates, and one-year government bond yield rates respond to changes in the refinancing rate of the Central Bank in different time lags.

PLANNING AND FEASIBILITY STUDY OF A HYBRID SOLAR POWER PLANT WITH AN ADDED AUTOMATIC TRANSFER SWITCH (ATS) FOR AN OFFICE BUILDING

The Office of the Regent of Sidenreng Rappang (Sidrap), situated on Harapan Baru Street, Batu Lappa, Watang Pulu District, Sidrap Regency, South Sulawesi, consumes 200 kWh of electricity daily for lighting, resulting in substantial energy costs. Recognizing the potential for renewable energy, especially with a daily solar radiation potential of 5.8 kWh/m2, this study proposes the implementation of a hybrid solar power plant system. The system incorporates Photovoltaic (PV) as the primary energy source, with the Grid and Generator serving as backup sources through an AC Coupling configuration utilizing Automatic Transfer Switch (ATS). The research employs a simulation approach using HOMER Pro software for system modeling, SketchUp software for solar panel layout, AutoCAD software for ATS circuit modeling, and theoretical calculations for financial analysis. The results indicate a solar power plant capacity of 39.6 kW, producing 75,701 kWh/year with an impressive 83.3% renewable penetration. From an economic standpoint, the project requires an investment of IDR 642,714,960, with a net present cost of IDR 1,573,177,823, and a cost of energy value of IDR 1,401.38/kWh. In terms of feasibility, the project demonstrates a net present value exceeding zero (IDR 216,680,041), a profitability index greater than one (1.33), an internal rate of return surpassing the credit interest rate (12.488%), and a payback period of 7 years and 7 months. These findings affirm the feasibility of the hybrid solar power plant planning project for the Sidrap Regent's Office, showcasing its economic viability and potential for sustainable energy solutions.

PLANNING STUDY OF HYBRID POWER PLANT SOLAR PV-DIESEL GENERATOR ON KODINGARE ISLAND, SINJAI REGENCY

Kodingare Island is located in Pulau Sembilan District, Sinjai Regency, one of nine islands. Currently, most people still rely on conventional energy from diesel power plants. The reason is that this island does not yet receive an electricity supply from the electricity grid due to the geographical limitations of the archipelago. It is known that the most potential renewable energy source on Kodingare Island is solar energy, with a potential for solar radiation reaching 5.86 kWh/m2/day. This research aims to analyze an innovation that combines PV and solar, where PV acts as the main electricity generator, while solar functions as a backup and additional energy source. The method used in this research uses simulation methods, layout modeling, and financial analysis using HOMER Pro simulation software to determine the potential and performance of hybrid power plants and SketchUp Pro software to produce three-dimensional layouts and economic and feasibility values obtained through financial analysis. Technical aspects include producing an electrical energy system of 37,029 Wh/year, consisting of PV of 32,981 Wh/year and solar of 4,048 Wh/year with energy consumption of 33,850 Wh/year. The required fuel consumption is 2,086 L/year, with excess electricity of 931 kWh/year and renewable energy penetration of 89.1%. From an economic perspective, planning this hybrid power system requires an investment of 258.290.000 IDR, O&M costs of 19.350.600 IDR, and the cost of energy value of 1,352/kWh IDR. In contrast, from the feasibility aspect of planning a hybrid electric power system, it is said to be feasible because it produces a Net Present Value of 9,870,151 IDR, is more significant than zero, the Profitability Index is 1.03 greater than one, the Internal Rate of Return is 8.90% greater than the credit interest rate of 8.43% and the Payback Period required for return of capital is nine years nine months.

Monetary policy transmission mechanism in Indonesia period 2002: Q1 – 2020: Q4: interest rate and asset price channel

This study aims to determine and analyze the effect of the monetary policy transmission mechanism on the interest rate channel and asset prices in Indonesia in achieving the ultimate goal of price stability throughout the period 2002:Q1 – 2020:Q4. This study uses secondary data related to policy interest rate variables, operational target interest rates, information variables, and final target variables for each channel of the monetary policy transmission mechanism. The analytical tool used in this research is the Vector Error Correction Model (VECM) which is processed using statistical software Eviews 10. The results of the analysis on the monetary policy transmission mechanism model of the interest rate channel indicate that in the short term, investment lending variables have a negative and significant effect on The CPI, meanwhile, the investment credit interest rate variable has a negative and significant effect. The results of the long-term analysis of the monetary policy transmission mechanism model of the interest rate channel show that the interest rate for investment credit, consumption credit, and the BI7DRR interest rate have a positive and significant effect on the CPI, while the variables for consumption credit interest rates, investment credit distribution, and real GDP negative and significant effect on the CPI. The results of the VECM analysis for the monetary policy transmission mechanism model for asset price channels confirm that the positive Error Correction Term (ECT) coefficient indicates that there is no adjustment mechanism towards long-term equilibrium. The results of the classical assumption test for the monetary policy transmission mechanism model of asset price channels also confirm deviations in the assumptions of normality and heteroscedasticity. Therefore, the economic interpretation of the VECM estimation on the monetary policy transmission mechanism model of the asset price channel cannot be carried out and requires the use of other analytical tools to produce a valid model .

Tingkat Suku Bunga, Jangka Waktu, Jenis Kredit dan Kredit Macet

Bad credit is a condition where credit customers are unable to pay the credit they have on time. This research aims to determine the effect of interest rates, credit terms and types of credit on bad credit. This research was conducted at the Village Credit Institution (LPD) Sukawati District. The sampling method used non-probability sampling and purposive sampling techniques with a total of 88 respondents. The data collection technique uses questionnaires and the data analysis technique uses multiple linear regression analysis techniques. The research results show that the interest rate, credit term and type of credit have a positive and significant effect on bad credit.
 Keywords: Bad Credit; Interest Rates; Credit Term; Types of Credit

Respon Suku Bunga Deposito dan Kredit Bank Umum terhadap Kebijakan Moneter Bank Indonesia

Many phenomena occur in International case studies, and various kinds of research show the relationship between interest rates (deposits and credits) and monetary policy carried out by Bank Indonesia. This type of research is quantitative research with secondary data taken from January 2010 to March 2021 (Time Series data), with two dependent variables: the first deposit interest rate and the second credit interest rate. There are three independent variables: BI Rate/BI7DRR, Economic Liquidity (M2), and Inflation. The analysis technique uses Multiple Linear Regression. The result is that the BI Rate/BI7DRR, Economic Liquidity, and Inflation together have a significant response/influence on deposit interest rates. Likewise, BI Rate/BI7DRR, Economic Liquidity, and Inflation have a practical response/impact on the credit interest rates at commercial banks.

Loan interest rates, credit guarantees, and lifestyle on credit making decisions at financing companies

Loan interest rates play a pivotal role in the borrowing and lending process. They impact the affordability of loans for borrowers, the profitability and risk management for lenders, and are influenced by economic conditions and regulations. Before taking out any loan, it's important to carefully consider the interest rate and its implications for financial situation.This research aims to look at the effect of credit interest rates and credit guarantees on credit-making decisions on financing companies in Batam. This research is a quantitative descriptive study with the distribution of questionnaires to respondents who apply for credit at finance companies at random with a total of 96 responden. From the results of the study, it was obtained that credit rates have a significant effect on credit decision-making, credit guarantees have a significant effect on credit decisions, lifestyle has an insignificant effect on credit-making decisions,and credit interest rates, credit guarantees. and lifestyle simultaneously have a significant effect on credit-making decisions. This research is expected to contribute to the community to be more thorough about the advantages and disadvantages of buying goods on credit. The conclusion is that interest rates and credit guarantees significantly influence credit, and business actors can take even better policies related to interest rates and credit guarantees.