Stability In Indonesia Research Articles

The Impact of Cryptocurrency and Electronic Money Use On The Circulating Money Supply and Monetary Stability in Indonesia

The purpose of this research is to analyze the long-term and short-term impacts of the use of cryptocurrency and electronic money on the money supply (M2) in Indonesia, as well as to analyze the long-term and short-term impacts of the use of cryptocurrency and electronic money on monetary stability (exchange rates) in Indonesia. The research method used is quantitative descriptive analysis with the Vector Error Correction Model (VECM) using the Eviews application and secondary data in the form of monthly data from 2011 to 2023 obtained from the official websites of Bank Indonesia and Finance. This study utilizes data on cryptocurrency transaction values and electronic money transaction values in Indonesia by analyzing the VECM model, which can observe the long-term and short-term impacts of the use of digital money on the money supply and monetary stability, in this case, viewed through the Indonesian exchange rate. The research results indicate that there is a one-way causality between electronic money and cryptocurrency, but not the other way around, and there is a one-way causality between the money supply and cryptocurrency, with the money supply as the dependent variable influencing cryptocurrency. The results of the VECM estimation indicate that in the long term, electronic money has a negative and sifnificant impact on the money supply. Meanwhile, the short-term estimation shows that both cryptocurrency and electronic money significantly influence the money supply, but their effects are dynamic and vary based on different lags. The long-term estimation with the exchange rate as the dependent variable shows that cryptocurrency does not have a significant impact on the exchange rate, while in the short term, both cryptocurrency and electronic money have a negative and significant effect on the exchange rate.

Penerapan Moderasi Beragama di Indonesia: Harmonis dan Inklusif

This study explores the implementation of religious moderation as a strategic step toward realizing a more harmonious and inclusive future for Indonesia. The method used in this research is the literature review method, with a descriptive analysis approach, analyzing documents related to and implemented by programs of religious moderation in Indonesia. The research results show that the challenges faced by the government in implementing religious moderation include resistance from conservative groups and a lack of support from educational institutions. This study concludes that religious moderation is a key factor in building a harmonious and inclusive Indonesia by strengthening cooperation between the government, religious leaders, and society in promoting the values of moderation. Thus, religious moderation can become a strong foundation for the sustainability of peace and social stability in Indonesia.

The Role of Political Parties in Maintaining Democratic Stability in Indonesia

The Indonesian state is one of the many countries that use a democratic system. Democracy is a system in which the people hold the highest position in government. This is in accordance with the etymological meaning of democracy, namely demos which means people and cratos which means power. And democracy has a reciprocal relationship that is from the people, by the people and for the people. This proves that democracy puts the people in the highest position. The requirement for democracy is the existence of elections. General elections occur when there are several political parties competing with each other for power and realizing the goals and ideals of the people or their members. In addition to realizing the ideals or goals of the people, political parties also have a very important role, namely conveying the aspirations of the people to the government in power, and political parties are also representatives of the people in overseeing the course of government so as not to deviate from pancasila. This writing uses a qualitative method approach using library research methods or literature studies. Where in the content of our material there are opinions of experts in their fields in the material we get by exploring previous studies related to the role of political parties in maintaining democratic stability in Indonesia. And in this writing we as writers really hope that our writing can be useful for readers, and we also hope that through our writing readers will be more concerned about the role of political parties in maintaining democratic stability in Indonesia.

Kepastian Hukum Transaksi Dengan Menggunakan Mata Uang Dinar Dan Dirham Dalam Pendekatan Hukum Pidana Di Indonesia

Legal certainty related to transactions using Dinar and Dirham currencies in the criminal law approach in Indonesia. Based on Law No. 7 of 2011 on currency, Rupiah is the only legal tender in Indonesia. The use of currencies other than Rupiah, including dinars and dirhams, is not legally recognized and has the potential to violate criminal provisions, such as those related to fraud or forgery. However, this phenomenon also involves social and cultural dimensions, especially in communities based on sharia economics, where dinars and dirhams are considered as means of transaction that are more in line with Islamic principles of justice and ethics. Overly repressive law enforcement can generate resistance in society, so more inclusive legal reforms and adjustments are needed. By promoting dialogue and collaboration between policy makers, business actors, and the community, it is expected to create a legal system that is fair and responsive to social needs and is able to maintain legal stability in Indonesia . From the research results, the transfer of receivables by Cessie by the creditor in the event that the debtor fails to pay the third party mortgage guarantee does not comply with the applicable provisions as regulated in Article 613 of the Civil Code and Law of the Republic of Indonesia Number 4 of 1996 concerning Mortgage Rights. Form legal protection for third parties by filing a lawsuit before or during the execution process. The government, stakeholders and related parties are expected to make changes to Law of the Republic of Indonesia Number 4 of 1996 concerning Mortgage Rights over Land and Objects related to Land, by accommodating third party protection which is explicitly regulated in guaranteeing rights to land, these regulations do not clearly regulate the rights and obligations of third parties so they cannot provide legal protection for collateral owners. The results of this study that legal certainty related to transactions using dinars and dirhams, as done by Zaim Saidi, in the approach of Indonesian criminal law is a violation of Article 9 of Law No. 1 of 1946 on Criminal Law regulations in conjunction with Law No. 7 of 2011 on currency. Enforcement of these transactions can be carried out through the application of criminal sanctions, since the use of currencies other than Rupiah for payment purposes is not justified by law. In addition, the low legal awareness of the public in using the Rupiah as a legal tender also became an important factor in this case.

Hukum Islam pada Imple¬mentasi Manajemen Risiko Penyelesaian Pembiayaan Bermasalah Bank Syariah Indonesia (BSI)

Islamic banking continues to develop, particularly in product diversification, offering a wider variety of options that have positively impacted the public's willingness to conduct muamalah activities through Islamic banks. Various financing products provide customers with the convenience of selecting options that suit their needs. The object of this research, as explained by Husein Umar in Setiawan Santana, focuses on problematic financing, a condition where significant deviations occur in repayments, leading to delays or potential losses. Problematic financing represents a situation where loan repayment agreements face the risk of failure and tend to lead to potential losses. This study offers new insights by examining the role of Islamic law in managing problematic financing risk at Bank Syariah Indonesia (BSI). The novelty of the research lies in the further exploration of using Islamic contracts (akad) as the main foundation in regulating and resolving problematic financing. Through this approach, the research provides a fresh perspective on how Islamic banks can more effectively manage financing risks while adhering to Sharia principles. The impact of this research on Islamic banking is quite significant. The application of risk management based on Islamic law is expected to enhance public trust in Islamic banking and strengthen its stability in Indonesia. The use of akad as the legal basis in resolving problematic financing ensures transparency and fairness in line with Sharia principles. This provides protection for both customers and the bank, creating a stronger foundation for the sustainability of Islamic banking in the future.

The Impact of Cryptocurrency and Electronic Money Use On The Circulating Money Supply and Monetary Stability in Indonesia

The purpose of this research is to analyze the long-term and short-term impacts of the use of cryptocurrency and electronic money on the money supply (M2) in Indonesia, as well as to analyze the long-term and short-term impacts of the use of cryptocurrency and electronic money on monetary stability (exchange rates) in Indonesia. The research method used is quantitative descriptive analysis with the Vector Error Correction Model (VECM) using the Eviews application and secondary data in the form of monthly data from 2011 to 2023 obtained from the official websites of Bank Indonesia and Finance. This study utilizes data on cryptocurrency transaction values and electronic money transaction values in Indonesia by analyzing the VECM model, which can observe the long-term and short-term impacts of the use of digital money on the money supply and monetary stability, in this case, viewed through the Indonesian exchange rate. The research results indicate that there is a one-way causality between electronic money and cryptocurrency, but not the other way around, and there is a one-way causality between the money supply and cryptocurrency, with the money supply as the dependent variable influencing cryptocurrency. The results of the VECM estimation indicate that in the long term, electronic money has a negative and sifnificant impact on the money supply. Meanwhile, the short-term estimation shows that both cryptocurrency and electronic money significantly influence the money supply, but their effects are dynamic and vary based on different lags. The long-term estimation with the exchange rate as the dependent variable shows that cryptocurrency does not have a significant impact on the exchange rate, while in the short term, both cryptocurrency and electronic money have a negative and significant effect on the exchange rate.

Policy implementation and strategic effects: Assessing the impact of parliamentary thresholds on Indonesia’s political system and governance

This study examines the impact of parliamentary thresholds on the Indonesian political system through the lens of the Routine Policy Implementation Model and the Strategic Policy Implementation Model. The main objective is to evaluate the effectiveness of parliamentary thresholds in managing political fragmentation, assess their impact on stability and representation in the legislative system, and understand their implementation’s technical and strategic implications. Using a qualitative approach supported by interview studies and field observations, this research combines analysis of election data in the 2009, 2014, and 2019 elections with a qualitative assessment of policy changes and political dynamics. The Routine Policy Implementation Model focuses on the technical aspects of threshold implementation, including vote counting procedures and seat allocation efficiency. Meanwhile, the Strategic Policy Implementation Model examines the broader implications of these thresholds for political consolidation, government effectiveness, and the representation of minor parties. The results show that the parliamentary threshold has significantly reduced political fragmentation by consolidating the number of parties in Parliament, resulting in a legislative system that is cleaner and easier to administer. However, this consolidation has also marginalized small parties and limited political diversity. The novelty of this study lies in its comprehensive analysis of how parliamentary thresholds affect administrative efficiency and strategic political stability in Indonesia, compared to democratic countries in transition, such as Slovenia and Montenegro. In conclusion, although parliamentary thresholds have increased political stability and government effectiveness, they have also raised concerns about the reduced representation of small and regional parties. The study recommends maintaining balanced thresholds that ensure stability and diversity, implementing mechanisms to review thresholds periodically, and involving diverse stakeholders in adjusting policies to reflect evolving political dynamics. This approach will help balance the need for a stable legislative environment with broad representation.

The Islamic Financing on Macroeconomic Stability in Indonesia

The objective of this study is to examine the function of Islamic finance in fostering macroeconomic stability in Indonesia. Specifically, it will scrutinize the stability of Islamic banks, its effects on micro, small, and medium enterprises (MSMEs), and its impact on economic growth and inflation. Employing a qualitative research approach, data were gathered by means of document analysis, encompassing books, scholarly publications, and institutional reports. The results demonstrate that Islamic banks, which employ profit-sharing and asset-backed financing structures, have higher levels of stability in comparison to conventional banks, therefore mitigating the likelihood of financial catastrophes. Islamic finance has profoundly facilitated the expansion of MSMEs by offering cost-effective, interest-free lending, therefore augmenting their productivity and economic contributions. Furthermore, Islamic finance promotes consistent economic expansion by prioritizing investments in tangible assets in industry areas such as agriculture and manufacturing. Although it suppresses speculative activity, its effect on inflation is inconclusive, as further growth of micro, small, and medium enterprises (MSMEs) may have upward influence on pricing. In conclusion, the study highlights that Islamic finance contributes to Indonesia's macroeconomic stability by strengthening Islamic banks, promoting MSME development, and fostering balanced economic growth. The data shows a consistent rise in the contribution of MSMEs to Indonesia's GDP from 57.08% in 2017 to 61.90% in 2022, underscoring their increasing significance in the national economy. This upward trend highlights the growing role of MSMEs in economic development.

FINANCIAL INCLUSION (FI): KINERJA UMKM DI INDONESIA DARI PUBLISH OR PERISH

Purpose: This study aims to analyze the financial inclusion of Micro, Small, and Medium Enterprises (MSMEs) that are currently supporting economic growth in Indonesia. Design/Methodology/Approach: Systematic Literature Review (SLR) is a method in this observation by reviewing certain topics of discussion that focus on specific problems that have been identified and classified in a structured manner, assessed, concluded, and selected based on previously determined benchmarks based on evidence and facts from quality research that is relevant to the research question. Research data was obtained from Google Scholar for the period 2011-2022 based on the initial search, there were 198 articles, and only 25 articles were used as data sources and will be studied in more depth. Findings: The results of the research show that through investment diversification, risk management, and wise financial planning, individuals and companies can reduce the negative impact of economic impacts and maintain their financial stability. Research Implications: Insulation can help MSMEs protect their businesses from market shocks, interest rate changes, or other external impacts that can be detrimental. Financial inclusion after the economic crisis that occurred in 2008 hurt financial stability in Indonesia.

Islamic Banks Stability in Indonesia: Assesing the Role of Islamicity Performance Amidst the Pandemic Challenges

Research Originality: Islamicity performance reflects adherence to Sharia principles, which are fundamental to Islamic banking operations. Research that emphasizes the contribution of Islamicity performance to the stability of Islamic bank requires additional studies.Research Objectives: This research examines the influence of banks’ internal factors, Islamicity performance, and macroeconomic factors on the Islamic bank stability amidst the pandemic challenges using financial intermediation theory.Research Methods:A random effects test was performed on a balanced panel data covering the period of 2017.1-2023.3 on 10 Islamic banks continuously publishing quarterly financial reports.Empirical Results: Credit risk and eficiency affect stability. Higher expenses enhance stability during pandemic. Reserves for uncollectible debt reduce stability. Islamicity performance in profit-sharing financing may reduce stability. Economic growth and inflation negatively affect stability pre-pandemic. Interest rate and dummy variables have positive effects.Implications: These findings imply the significance of preemptive risk management, cost-effective operations, prudent reserves allocation, and regulatory compliance to enhance stability in Islamic bank across varying economic circumstances.JEL Classification: E4, G21, B22How to Cite:Amaroh, S., Masykuroh, E., Husnurrosyidah., & Ali, M., (2024). Islamic Banks Stability in Indonesia: Assesing the Role of Islamicity Performance Amidst the Pandemic Challenges. Etikonomi, 23(2), 317 – 332. https://doi.org/10.15408/etk.v23i2.37269.

Detection of the Palestine-Israel Conflict on Economic Stability in Indonesia

Detection of the Palestine-Israel Conflict on Economic Stability in Indonesia

Legal Review of Muhammadiyah's Strategy in Preventing the Spread of Radicalism

Radicalism among the youth is a serious challenge to security and social stability in Indonesia. Muhammadiyah, as one of the largest Islamic organizations in the country, plays a crucial role in preventing the spread of radicalism. This study aims to analyze Muhammadiyah's strategies in preventing radicalism among the youth, particularly through a legal and human rights (HAM) approach. This research employs a normative legal research method with a juridical and conceptual approach. Data is obtained through the study of documents and literature related to the radicalism prevention strategies implemented by Muhammadiyah. The findings indicate that Muhammadiyah's strategies in preventing radicalism focus on education, moderate preaching (dakwah), and character building of the youth based on the values of Islam as a blessing for all (rahmatan lil 'alamin). The legal and human rights approach is applied in the form of respect for freedom of religion, the right to education, and efforts to prevent discrimination as well as actions that violate the law in the process of preventing radicalism. However, there are challenges in implementing these strategies, particularly regarding the alignment between Muhammadiyah's programs and government regulations, as well as public perceptions of radicalism.

Wewenang Dewan Perwakilan Daerah dalam Memperkuat Otonomi Daerah Menurut Undang-Undang Dasar Negara Republik Indonesia Tahun 1945.

In the Indonesian government system, the DPD is a representation of the people, a state institution that is constitutionally given the authority and task of representing regional interests at the national level. The DPD not only proposes policies related to regional autonomy, but also ensures continued development and political stability in Indonesia. However, in practice, the DPD's role is limited by structural constraints and dependence on its partners, especially the DPR and the central government. The DPD relies heavily on the DPR to make decisions, which reduces its effectiveness. This limitation shows that the position of the DPD is not equal to that of the DPR. As a constitutional institution, it is important for the DPD to be given a more substantial role in policy making to ensure better representation for the regions. The main issue discussed is how the authority of the Regional Representative Council of the Republic of Indonesia (DPD-RI) is in strengthening regional autonomy and how DPD-RI as regional representatives can have equal rights and authority to the DPR-RI in fighting for regional interests. This research method uses a type of normative legal research that uses secondary data through literature searches. The conclusion drawn is that DPD-RI has limitations in supporting regional autonomy. Article 22D of the 1945 Constitution of the Republic of Indonesia as a result of the amendment actually weakens its position. The increase in authority is expected to strengthen its role as a balancer in the Indonesian political system.

Analytic Network Process on Early Warning Indicators for Financial System Stability

The purpose of this research is to find out the leading indicators of financial crisis from the perspective of expert practitioners, micro and macroeconomic sides; Based on the results of interviews with banking practitioner experts, related to the most important indicators of financial system stability in Indonesia, both microprudential and macroprudential criteria, both aspects are equally considered important and priority. However, from the practitioners' perspective, the microprudential aspect is a more important factor (0.506) than the macroprudential aspect (0.494). Macroprudential and Microprudential policies issued by Bank Indonesia as the central bank with full authority play an important role in maintaining Financial System Stability. The presence of the Financial System Stability Coordination Forum (FKSSK) which consists of several financial authorities is expected to be able to save the economic conditions of the Indonesian nation in the financial sector. For future research, this study is expected to be an initial step. For example, by further expanding the number of expert respondents who are not only from banking practitioners, but also from academics and policy makers.

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.

Leverage, capital adequacy, and financial stability in the fintech industry: Evidence from Indonesia

The paper examined the influence of leverage and capital adequacy on fintech's financial stability in Indonesia. We utilize both quantitative and qualitative methods. The findings showed that leverage significantly constrained the financial stability of the fintech industry in the short run. Contrarily, capital adequacy has no significant effect on financial stability. Specifically, the qualitative results indicated that a high liability-to-asset ratio depressed the financial stability of the fintech industry. However, the influence of the asset-to-equity ratio on financial stability depends on asset quality, liquidity, and riskiness. Furthermore, the respondents noted the insufficiency of capital requirements in the fintech industry. Thus, fintech firms should focus on asset quality, while regulators should tighten capital regulation.

Determinan stabilitas perbankan di Indonesia: Pendekatan makro dan mikro prudensial

Banks have a very important role in the economy. Not only as financial intermediaries. They have also played a big role in the effectiveness of monetary policy. Therefore, bank stability is very important. This research aims to determine the influence of micro-prudential variables represented by CAR, NPL, and LDR variables, as well as the influence of macro-prudential variables represented by the Rupiah exchange rate variable against USD, inflation, interest rates, and IHSG, on bank stability in Indonesia, both in the short and long term. Using the vector error correction model (VECM) analysis technique, this research provides results that microprudential variables and macroprudential variables are both proven to have an influence on banking stability in Indonesia. Micro-prudential indicators such as CAR and LDR have been proven to have a positive effect on banking stability. Meanwhile, NPLs have a negative effect on banking stability. Likewise for macro-prudential indicators: the exchange rate and inflation have a negative effect on financial system stability. Meanwhile, interest rates and IHSG have a positive effect on banking stability. The impact of surprises or shocks that occur in micro-prudential and macro-prudential variables on banking stability is permanent. The implication of the findings in this research is that Bank Indonesia and the Financial Services Authority have a very large role in achieving banking stability in Indonesia.

BESS Revolutionizes Renewable Stability in Indonesia

This study examines the integration of Battery Energy Storage Systems (BESS) with Solar Power Plants (PLTS) to enhance electrical grid stability in Indonesia, where 90% of electricity is from fossil fuels. The intermittent nature of PLTS often destabilizes the network, causing frequency hunting or blackouts. Using Etap 12.6 software, simulations showed that adding BESS to hybrid PLTS-PLTD systems significantly mitigates these issues. For instance, a 50% drop in PLTS power without BESS required a 55% increase in PLTD power, but with BESS, this increase was only 34%. Thus, BESS is crucial for stabilizing renewable energy integration and supporting Indonesia’s Net-Zero Emissions goal. Highlights: BESS Stabilizes Power: Reduces impact of PLTS power fluctuations on PLTD. Simulation Insight: 50% PLTS drop increases PLTD by 34% with BESS. Net-Zero Goal: BESS supports Indonesia’s renewable energy and emission targets. Keywords: Renewable Energy, Solar Power, Battery Storage, Electrical Grid Stability, Indonesia

The Influence of Product Diversification, Service Quality, and Risk Management of Islamic Banks on Money Market Stability in Indonesia

This study investigates the effect of Product Diversification, Risk Management, and Service Quality of Islamic banks on Money Market Stability in Indonesia. Using quantitative analysis based on Structural Equation Modeling with Partial Least Squares (SEM-PLS), data were collected through a survey of Islamic bank customers. The results reveal significant positive relationships between Product Diversification, Risk Management, Service Quality, and Money Market Stability. Product Diversification positively influences Service Quality and Risk Management, while Service Quality and Risk Management, in turn, positively impact Money Market Stability. The findings underscore the importance of adopting comprehensive strategies to enhance the stability of the money market in Indonesia's Islamic banking sector. These insights have implications for practitioners, policymakers, and researchers aiming to promote financial stability and inclusivity in Islamic finance.

The Influence of Digital Payment Implementation on Banking Stability in Indonesia (A Study on Conventional Banks in Indonesia Listed on the Indonesia Stock Exchange)

This study aims to investigate the influence of digital payments on the stability of conventional banks listed on the Indonesia Stock Exchange (IDX). Additionally, the research will delve into the role of banking asset quality and liquidity as control variables that may regulate the relationship between digital payments and financial stability. In examining the relationship between digital payments for MSMEs and financial system stability within the conventional banking system listed on the IDX from 2012 to 2022, the research begins by measuring digital payments and banking system stability. Sampling is conducted using purposive sampling, resulting in a collection of 27 conventional banks. The data analysis method for this research includes descriptive analysis, instrument tests, classical assumption tests, t-tests, F-tests, and hypothesis testing using multiple regression analysis. The research findings indicate that ZScore, return on assets, and return on equity have a positive effect on the stability of conventional banks in Indonesia, using Non-Performing Loans and Loan to Deposit Ratio as control variables. Thus, this study supports and strengthens previous research.