Bank Indonesia Research Articles

Greening the Bottom Line: How Do Banking Sectors Implement Technology to Support Sustainable Development Goals in Innovation?

The urgent need to align banking practices with the Sustainable Development Goals (SDGs) has become increasingly apparent, particularly in the context of fostering industry, innovation, and infrastructure. The primary issue at hand is the insufficient integration of SDG 9 into banks’ core strategies and operations, despite its critical importance for sustainable development. The novelty of this study lies in its detailed examination of the extent to which Indonesian banks support SDG 9 through their reported activities, an area that has been underexplored in previous research. This research aimed to investigate the level of support from banking industries to the Sustainable Development Goals (SDGs), with a particular focus on SDG 9: industry, innovation, and infrastructure. This study utilized a content analysis approach to collect secondary data from the sustainability reports of 44 banks listed on the Indonesia Stock Exchange between 2017 and 2020, resulting in 176 observations. In cases where sustainability reports were unavailable, annual and combined reports were used as unit analyses. The findings revealed that Indonesian banks have undertaken various activities to support SDGs, and there has been an increasing trend in disclosure from 2017 to 2020. However, the study found that a significant role of technology transformation, which should lead to innovation and support for SDG 9, was lacking. This finding suggests that SDGs are still primarily measured by external activities rather than internal activities, despite the importance of business strategy in supporting SDGs. Another significant finding was that micro, small, and medium enterprises (MSMEs) received the most support for sustainable business activity categories (SBAC). The research contributes to the literature by providing insights into the level of support for SDG 9 and SBACs. The study also underscores the importance of measuring the impact of digital banking services, which have been widely implemented, and the need for significant support for SBAs in the environmental sector.

Analisis Faktor Pertumbuhan Kredit Bank Komersil Di Indonesia

This research analyzes the influence of Non-Performing Loans, Loan to Deposit Ratio, Loan Loss Provision, Equity Asset Ratio, Liquidity Ratio, Gross Domestic Product, Inflation, Interest Rate, Bank Capital, and Bank Size on Loan Growth Rate in banking companies listed on the Indonesia Stock Exchange (BEI) from 2019 to 2023. The method used is regression multiple panels with secondary data obtained through purposive sampling, covering 205 financial reports from 41 companies. The results of the analysis using Eviews 12 show that Non-Performing Loans, Loan to Deposit Ratio, Loan Loss Provision, Equity Asset Ratio, Liquidity Ratio, Gross Domestic Product, Inflation, Interest Rate, Bank Capital, and Bank Size have a significant influence on Loan Growth Rate. This research provides important insights into the factors influencing loan growth in the Indonesian banking sector, as well as implications for risk management and banking policy.

The Impact of the COVID-19 Pandemic on Banking Liquidity: A Case Study of Various Bank Types in Indonesia

This study aims to examine the condition of banking liquidity in Indonesia during the COVID-19 pandemic, utilizing linear regression to analyze factors influencing the liquidity of commercial banks in Indonesia from March 2020 to June 2023. The dependent variable used is the Loan Deposit Ratio (LDR), while the independent variables include Capital Adequacy Ratio (CAR), Return on Assets (ROA), Non-Performing Loans (NPL-gross), and Credit Restructuring Ratio to total Credit. The results reveal that CAR has a significant negative effect on the liquidity of Regional Development Banks (BPD), State-Owned Enterprises (BUMN), Private Banks, and Overseas Bank Branch Offices (KCBLN). Conversely, ROA has a positive and significant impact on state-owned banks but is not significant for BPD, private, and KCBLN banks. The NPL ratio does not significantly influence liquidity across all types of banks. Credit Restructuring Ratio negatively affects BPD and positively affects KCBLN, but it does not have a statistically significant effect on State-Owned and Private Banks. This research is unique as it is the first to examine commercial banks in Indonesia during the pandemic, providing valuable insights into the factors affecting bank liquidity during this period. The findings highlight the importance of maintaining adequate capital and profitability to support bank liquidity, especially during economic crises.

Analyzing Profitability Determinants in Indonesian Conventional and Islamic Banking

This article investigates the impact of financial ratios and macroeconomics on the profitability of conventional and Islamic banks in Indonesia. The study uses financial ratios as internal variables represented by CAR (X1), NPL/NPF (X2), and LDR/FDR (X3), while macroeconomics as an external variable is represented by BI7DRR (X4). The sample design used in this study includes conventional and Islamic banks from BUKU 1 and BUKU 2 in Indonesia, utilizing EViews and SPSS as analysis tools to test the proposed hypotheses. The analysis results show that CAR, NPL, and LDR have significant impacts on the ROA of conventional banks, while BI7DRR does not have a significant effect. On the other hand, in Islamic banks, only CAR and FDR significantly influence ROA, while NPF and BI7DRR do not have significant impacts. A paired sample t-test indicates a significant difference between the profitability (ROA) of conventional and Islamic banks. Based on these findings, it is recommended that conventional banks improve their management of CAR, NPL, and LDR, while Islamic banks need to focus on managing CAR and FDR, and develop innovative Sharia-compliant investment products to attract more stable funds.

Stability and Performance of Conventional and Sharia Banking in Indonesia Before and After the Covid-19 Pandemic

This study examines the impact of the COVID-19 outbreak on the performance and stability of Indonesia's dual banking system. Our sample includes the top 20 banks by assets, both conventional and sharia, from 2018 Q1 to 2023 Q3. Data for conventional banks is obtained from Bloomberg, while data for Islamic banks is sourced from each bank's official website. We use ROA, ROE, and NIM as performance variables and Z-Score and NPL as stability variables. External factors such as GDP, Inflation, BI Rate, and Exchange Rate serve as independent variables, while bank-specific variables act as controls. Panel data regression is used to determine causal relationships between these factors and banking performance and stability. We also compare bank performance and stability before and after COVID-19 using the Mann-Whitney Test. Findings indicate that the pandemic significantly affected conventional banks' Z-Score, NPL, ROA, ROE, and NIM, while only NPL was significantly affected in sharia banks. The results highlight the significant impact of GDP, exchange rate, and BI Rate on banking variables, while inflation had no effect. The type of bank significantly influences performance but not stability.

Determinants Of Indonesian Exports To Australia For The Period 2000-2022

The purpose of this research is to measure of Indonesia's GDP, Exchange Rate and Inflation Rate, on Indonesian exports to Australia for 22 years from 20 00 to 202 2. The data used are secondary data obtained from, World Bank, Bank of Indonesia, BPS and Ministry of Trade. This research uses secondary data with time series data used Multiple Linear regression. The results of this research show that Indonesia's GDP, Inflation Rate, has a positive and significant influence on Indonesian exports to Australia, while Exchange Rate has a negative and significant Indonesian export to Australia.

Analysis Of The Effect Of Using Technology In Agricultural Cooperatives On Consumer Behavior: Case Study Of The Koperasi Konsumen Tani Sejahtera Bersama Batam (KTSBB)

The purpose of this research is to measure of Indonesia's GDP, Exchange Rate and Inflation Rate, on Indonesian exports to Australia for 22 years from 20 00 to 202 2. The data used are secondary data obtained from, World Bank, Bank of Indonesia, BPS and Ministry of Trade. This research uses secondary data with time series data used Multiple Linear regression. The results of this research show that Indonesia's GDP, Inflation Rate, has a positive and significant influence on Indonesian exports to Australia, while Exchange Rate has a (Kalaycıoğlu & Keskin, 2019)negative and significant Indonesian export to Australia.

Perlindungan Hukum dan Kebijakan Tarif Pajak terhadap Trader Crypto di Indonesia

Cryptocurrency investment in Indonesia has become an increasingly popular topic as people's interest in digital assets increases. Although there is potential for huge profits, there are also risks that need to be considered. The Indonesian government takes a cautious stance in regulating cryptocurrencies. Clear regulations still do not exist, although in 2019, the Commodity Futures Trading Supervisory Agency (BAPPEBTI) issued regulations recognizing cryptocurrencies as commodity futures that can be traded on futures exchanges. Bank Indonesia has issued a statement reminding the public of the risks associated with the use of digital currencies, but there has been no outright ban on their use. There are also concerns regarding the misuse of cryptocurrencies for illegal purposes, such as money laundering and terrorism financing, which are continuously monitored by governments and financial regulatory agencies. Despite regulatory uncertainty, interest in cryptocurrencies continues to grow in Indonesia, and more and more companies and individuals are interested in understanding and using this technology.

Perlindungan Hukum dan Kebijakan Tarif Pajak Terhadap Trader Crypto di Indonesia

Cryptocurrency investment in Indonesia has become an increasingly popular topic as people's interest in digital assets increases. Although there is potential for huge profits, there are also risks that need to be considered. The Indonesian government takes a cautious stance in regulating cryptocurrencies. Clear regulations still do not exist, although in 2019, the Commodity Futures Trading Supervisory Agency (BAPPEBTI) issued regulations recognizing cryptocurrencies as commodity futures that can be traded on futures exchanges. Bank Indonesia has issued a statement reminding the public of the risks associated with the use of digital currencies, but there has been no outright ban on their use. There are also concerns regarding the misuse of cryptocurrencies for illegal purposes, such as money laundering and terrorism financing, which are continuously monitored by governments and financial regulatory agencies. Despite regulatory uncertainty, interest in cryptocurrencies continues to grow in Indonesia, and more and more companies and individuals are interested in understanding and using this technology.

Analisis Perlindungan Hukum bagi Pelaku Usaha Penyedia Sistem Pembayaran Qris (Quick Response Indonesian Standard) berdasarkan Undang-Undang Nomor 8 Tahun 1999

Technological developments have changed the paradigm of payment systems from cash to non-cash, including in the form of electronic money (e-money) and QR-Code. QR-Code has become a popular payment method, especially with the implementation of Quick Response Indonesian Standard (QRIS). However, with technological advances also come new challenges related to legal protection for businesses that provide QRIS payment systems. This paper discusses the urgency of legal protection for business actors providing QRIS payment systems based on Law Number 8 Year 1999 concerning Consumer Protection. In this context, the concepts of freedom of contract, consent, sale and purchase, and consumer protection are elaborated to understand the rights and obligations of the parties in electronic payment transactions. The importance of the application of law as a preventive and repressive measure to prevent and overcome violations is also discussed. In addition, the relationship with Law Number 19 of 2016 concerning Electronic Information and Transactions and the implementation of Bank Indonesia regulations related to QRIS are highlighted in enforcing the rules and ensuring security and legal certainty in electronic payment transactions.

The Benefits of Revenue Diversification on Bank Profitability and Stability: An Empirical Study on Indonesian Commercial Banks

Traditional business activities of commercial banks in Indonesia experienced a shift as indicated by the percentage of non- interest income per interest income from 26.1% in 2014 to 51.3% in 2020. The study aims to determine revenue diversification, internal determinants, and macroeconomic determinants in affecting profitability, stability, while also observing the role of bank capitalization. This study analyze sample of Conventional Commercial Banks in Indonesia from 2013 to 2020, using dynamic panel data GMM. Research proves that direct effect of non-interest income on revenue diversification has a significant positive effect on ROA and risk adjusted ROA, as well as a negative effect on NPL; as the indirect effect of only significantly affects RAROA. However, there are contradictions in the results of research using the interaction variable of revenue diversification with bank capitalization. The empirical test results also prove the role of the control variables cost income ratio, deposit to total asset, bank capital, loan to total asset, bank size, inflation rate, and GDP growth in affecting bank performance and stability. This study proves the specific benefit of revenue diversification for commercial banks in Indonesia as a whole, although it does not apply to BUKU 1 banks.

Analisis Rasio 3 - Bank Komersial dengan Uji - Rls: Implikasi dan Bukti Kinerja Keuangan Bank Indonesia dan Malaysia

Abstracts This research aims to analyze the interaction between commercial banks in Indonesia and commercial banks in Malaysia on bank financial performance reports seen from the ratio aspect of bank financial reports. The method used in this research is a quantitative descriptive method by knowing the existence of the Dependent variable value on the variable (Independent) or more without making relationships and comparisons with other variables. In terms of bank value using the 3 - RLS implementation route, namely, the bank's Profitability Ratio is calculated by looking for Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), and Operating Expenses / Operating Income (BOPO). The Liquidity Ratio is calculated by finding the Quick Ratio (QR), Loan to Deposit Ratio (LDR), and Loan to Assets Ratio (LAR). The Solvency Ratio is calculated by looking for the Capital Adequacy Ratio (CAR) and Debt to Equity Ratio (DER). The results of this research evaluate and see the feasibility of 3 commercial banks in Indonesia and Malaysia against the Central Bank using the Triple - RLS method concept. As for commercial banks, there is policy integration with central bank criteria. Therefore, there needs to be discipline and commitment in improving financial performance in financial reports between Indonesian and Malaysian commercial banks.

Does The Merger of Large Sharia Bank Work? A Study of Islamic Bank in Indonesia

Does The Merger of Large Sharia Bank Work? A Study of Islamic Bank in Indonesia

Analysis of Utaut Application on Digital Bank Usage in Jabodetabek

Digital banking is a form of adaptation to new threats and changes in the banking sector. This can be seen from the actions of major banks launching their own digital banks. Such as Digibank, Bank Jago, Jenius and TMRW which were founded by major banks in Indonesia. The purpose of this study is to analyze the effect of UTAUT variables on digital bank users in Jabodetabek. The analysis method used in this research is PLS-SEM with the SmartPLS 3.3.3 application tool. The data obtained in this study were taken using a questionnaire instrument with Google Form. The stages of analysis carried out in this study are starting from the outer model, inner model, and hypothesis testing. The acquisition of valid data that was successfully collected was 250 respondents. The sampling method in this study is non probability sampling with purposive sampling technique. The results of this study indicate that performance expectancy, effort expectancy, and social influence have an influence on behavioral intention and facilitating conditions and behavioral intention also have an influence on use behavior. In this study it was found that only experience can moderate the relationship between facilitating conditions and use behavior.

Regulation and Practice of Salam and Istishna Contracts in The Islamic Banking System in Indonesia

This study analyzes the regulation and practice of akad salam and istishna in the Sharia banking system in Indonesia. By paying attention to the existing regulatory framework, this article examines the practical implementation of akad salam and istishna by Sharia banks in Indonesia as well as the challenges faced in the application of the contract. The results of the analysis highlight the importance of a deep understanding of sharia principles in the development of appropriate sharia banking products and services. Keywords: Akad Salam, Istishna, Sharia Banking, Regulation, Practice.

Determinants of Inflation in Indonesia: Do Changes in World Oil Prices Matter?

This research was conducted to investigate the effect of world oil prices, interest rates, and money supply on inflation in Indonesia. This study uses the Autoregressive Distributed Lag (ARDL) analysis method. The data used were monthly data from January 2014-May to 2022. The results show that interest rates do not significantly affect inflation in the short or long run. Money supply has a negative relationship with inflation in the short and long run. In the short term, world oil prices have a negative effect on inflation. Meanwhile, world oil prices have a positive and significant relationship with inflation in the long run. This finding implies that it is necessary to emphasize policies other than interest rates when controlling inflation, such as more straightforward bureaucratic policies, ease of investment services, and a more effective import trading system. Bank Indonesia should also remain consistent and focus on prudence when implementing macroeconomic policies. The government must also consider the timeframe for determining the oil price policy because it has different short-term and long-term effects.

The Effect of CAR and NPF on the Profitability of Islamic Commercial Banks in Indonesia

The Effect of CAR and NPF on the Profitability of Islamic Commercial Banks in Indonesia

Green Finance: Evaluating the Impact of Sustainable Investments on Corporate Performance of Islamic Bank in Indonesia

Green Finance: Evaluating the Impact of Sustainable Investments on Corporate Performance of Islamic Bank in Indonesia

Dampak Kinerja Keuangan terhadap Profitabilitas Bank Syariah: Analisis Perbandingan Bank Syariah di Indonesia dan Malaysia

This study aims to analyze the effect of financial performance on the profitability of Islamic banks in Indonesia and Malaysia, using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach and secondary data from 2019 to 2023. The results showed that asset quality, as measured by Net Performing Financing, proved to have a significant influence on profitability, with the coefficient value of Islamic banks in Indonesia is 0.035 and in Malaysia is 0.05. While other factors do not have a significant effect on profitability. This shows that both Islamic banks are very vulnerable to the quality of financing. Based on the results of this study, it is expected that stakeholders, such as Islamic banks and the government, can take concrete steps to improve the profitability and stability of the Islamic banking sector. Islamic banks are expected to focus on improving asset quality, managing credit risk better, and developing effective risk management strategies. Keywords: Financial performance; Profitability; Islamic banks; Indonesia; Malaysia; PLS-SEM.

Wadiah Savings Fund Strategy and Bank Products at Bank Syariah Indonesia

This study aims to find out about the development of Islamic banks in Indonesia. This research is qualitative descriptive. This study included literature to examine the written sources such as scientific journals, books referesni, literature, encyclopedias, scientific articles, scientific papers and other sources that are relevant and related to the object being studied. As for the object of study of this research is in the form of texts or writings that describe and explain about the development of Islamic banks in Indonesia. Results from this study is Indonesian banking now enlivened by the presence of Islamic banks, which offers financial products and investment in a different way than conventional banks, as Indonesia is the largest Muslim country in the world. The development of Islamic banking in Indonesia has become a benchmark for the success of the Islamic economic existence. Bank Muamalat as the first Islamic bank and a pioneer for other Islamic banks in Indonesia.