This paper aims to develop the role of internal factors, external factors, and risk management variables on MSMEs’ business performance. This research was conducted in underdeveloped regions of five provinces, which includes 14 cities in Indonesia—East Java, West Sumatra, North Sumatra, West Nusa Tenggara, and East Nusa Tenggara. The Resource-based view and Market-based view methods were chosen to measure 1401 data of MSMEs. The data was collected using offline questionnaires then processed using SPSS. This paper demonstrates a remarkable outcome for MSMEs, showing the significant result of risk management factors that includes risk assessment of marketing and financial management. Other independent variables of internal, external, and risk management factors also show important outcomes on MSMEs performance. This paper offers additional value of the implementation of ERM in MSMEs, which are spread in underdeveloped regions in Indonesia. The findings shown that the activity of the enterprises in identifying and managing risk would bring up the significant effect on operational business performances.

This paper examines how competition affects bank fragility and how this relation varies in normal times and during a financial crisis using the data from Indonesian commercial banking industry. The author finds significant evidence, both statistically and economically, that more competition reduces bank fragility. In particular, the author finds that a decrease in Herfindahl -Hirschman Index (HHI) of deposits by 100 points leads to an increase in bank Z-score by 14.22 percent from its mean. Similarly, a decrease in HHI of loans by 100 points leads to an increase in Z36 by 20.44 percent. This finding is consistent across different kinds of robustness tests, including endogeneity, as well as alternative bank fragility and competition measures. However, this competition-stability nexus holds only in normal times and is reversed during a financial crisis. This suggests that the impact of competition on bank fragility is conditional on the economic condition.

Purpose In examining an economic fluctuation, researchers often refer to the theories of impaired access to capital which mostly explain, from the perspective of bank lending supplies, a shock in firm’s access to investment would decrease its capital expenditures and net debt issuance during crisis period. However, some studies show that this is not always the case. A demand shock theory can explain the decrease in firm’s capital expenditures and net debt issuance during crisis period, but there should be no causal link between the two. This is because firms naturally do not invest during crisis period because of a decrease in investment wealth during crisis period. This paper aims to examine these theories with respect to the Covid-19 crisis in Indonesia. Design/methodology/approach The change in firms’ capital expenditure and net debt issuance is analyzed using a non-parametric difference-in-difference and matching estimator across four firm-dimensions to see whether the implications of the supply shock theory apply to the current crisis or if that firms naturally do not invest during the crisis. In addition, this paper provides the result of panel regression to confirm the causal link between firms’ investment funds and capital expenditure, with an addition of consumer confidence index to accommodate the implications of the demand shock theory. Findings The results of this paper show that the implications of the supply shock theory cannot explain the economic fluctuation during the Covid-19 crisis. Rather, the results suggest that firms naturally do not want to invest during the crisis and that the demand shock can better explain the economic fluctuation during the Covid-19 crisis. This is confirmed by the result of panel regression which shows that only consumer confidence index has a significant positive relationship with firms’ capital expenditure. Originality/value This is the first study to examine the theory of impaired access to capital with respect to the Covid-19 crisis in Indonesia.

The Financial Services Authority (FSA) plan to applies Liquidity Coverage Ratio (LCR) to all conventional commercial banks in Indonesia, this implementation of LCR will make Banks in Group Based on Core Capital 1 (KBMI 1) which is currently not required to calculate and fulfil LCR, in the future required to fulfil and report LCR. Therefore, in order to make preparations for the fulfilment of the LCR for the KBMI 1, research is needed to examine what factors affect the Liquidity Coverage Ratio (LCR). This study also examines the difference LCR determinants between before and during pandemic Covid-19. The analysis use regression with panel data using bank's financial ratio as the determinant factors of LCR. The result show that bank size, capital adequacy ratio (CAR), non-performing loan (NPL), return on asset (ROA), operational cost on operation revenue (BOPO) and central bank rate affect the LCR of banks that have been required to calculate and meet the LCR limit. There are several differences in LCR determinants between before the COVID-19 pandemic and during the pandemic. Factors that affect LCR before the pandemic are CASA, CAR, NPL, ROA and BOPO. Meanwhile, during the pandemic factors that affect LCR are SIZE, CASA, CAR, NPL and ROA.

litian ini bertujuan untuk mengeksplorasi peran faktor internal dan eksternal terhadap kinerja 164 Usaha Mikro, Kecil, dan Menengah (UMKM) di daerah Depok dan Jakarta. Metode yang digunakan adalah uji korelasi dan diperdalam dengan uji regresi. Penelitian ini menunjukkan bahwa kinerja UMKM dipengaruhi oleh faktor internal yaitu manajemen operasional, pemasaran, dan teknis. Selain itu, situasi industri juga turut memengaruhi kinerja UMKM. Apabila faktor-faktor tersebut diperkuat, hal ini akan meningkatkan posisi UMKM di pasar. Pada sisi lain, faktor tersebut juga meningkatkan keberlangsungan usaha dalam jangka panjang.

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Perkembangan sektor perbankan di Indonesia dalam 10 tahun mengalami pertumbuhan yang agresif, tetapi juga memperhatikan rasio modal berdasarkan risiko sesuai dengan ketentuan otoritas. Bank BUMN di Indonesia menguasasi ?45% dari total aset pada sektor perbankan, dan memiliki rasio penyediaan modal minimum yang lebih tinggi dari yang disyaratkan otoritas. Penelitian in imembahas perhitungan VaR dengan metode GEV dan GPD, serta membandingkannya dengan rasio penyediaan modal minimum bank. Hasil perhitungan dengan menggunakan metode GPD paling mendekati nilai rasio modal bank, selain itu kedua hasil perhitungan baik GEV dan GPD lebih tinggi saat dibandingkan dengan perhitungan VaR dengan metode lainnya ataupun ketentuan yang ditetapkan oleh otoritas.

Berdasarkan UU No 21 Tahun 2008 tentang perbankan Syariah, prinsip perbankan 2 jendela di Indonesia akan berakhir pada maksimal tahun 2023 dimana bank yang selama ini menjalankan bisnis Syariah dengan menggunakan Unit Usaha Syariah (UUS) maka akan dipaksa untuk melakukan spin off atau konversi menjadi bank umum Syariah. Penelitian ini dilakukan untuk memprediksi kebangkrutan pada bank Aceh setelah dilakukan konversi dari bank konvensional menjadi bank Syariah pada tahun 2014-2018 dengan menggunakan metode Z-Score. Teknik analisis dalam penelitian ini adalah dengan metode Z-Score menggunakan rasio keuangan ROA dengan rumus Z-Score = (ROA + E/A)/ S.D ROA. Penelitian ini menyimpulkan bahwa H1 dapat diterima dikarenakan hasil Z-Score setelah konversi memperlihatkan perubahan tingkat risiko pada Syariah lebih baik dari pada saat masih menjadi bank Aceh konvensional