COVID-19 has disrupted economic growth and business conditions globally including in Indonesia. One of the most obvious impacts is in the banking sector as many bank debtors have lost their livelihoods. This situation affects the quality of bank assets and profitability. An increase of non-performing loans experienced by some national banks has decreased the capability to generate optimal profit from bank operations that normally would keep the banks healthy, liquid, solvent, and in a profitable state. To strengthen the stability of Indonesian financial services and support the national economic recovery effort, the Financial Services Authority (OJK) issued several regulations on macroprudential policy relaxation and stimulus provision. The regulations ensure that banks are capable to control the bad credit of the debtors affected by the COVID-19 pandemic. This study aims to analyze the impact of Financial Service Authority Regulations on the quality of banking credit in supporting the Indonesian economic recovery during the COVID-19 pandemic. This is a qualitative study using a critical thinking analysis method to prove the assumption of Keynesian economic theory, which state that in a recession expansionary fiscal policy can stimulate economic activity. The results of this study indicate that the Financial Services Authority regulations have shown an impact in supporting the Indonesian economy recovery efforts amid the COVID-19 pandemic, which can be seen through the stability of the financial system. Further empirical and quantitative studies are needed to confirm the study findings.
<p>As the Millennium Development Goals (MDGs) ended, the United Nations followed them up with 17 Sustainable Development Goals (SDGs). One of the goals, Life Below Water, is very strategic to Indonesia given its position as the biggest maritime archipelagic nation in the world. However, Indonesia’s life below water faces threats as pollutants from human activities end up in the sea. Using Structural Human Ecology (SHE) theory, this article discusses the issue using cases in Jakarta and Bali and how the two provinces have dealt with the problem. Employing the qualitative method through document analyses, this study found that the two provinces have used different approaches in solving the problem. While Jakarta has its law regarding the issue, Bali has more progressive law in curbing the disposal of waste, especially plastic, to the river leading to the sea. Law enforcement and education have become the keys to ensuring that industrial and domestic actors to stop irresponsible disposal of waste.</p>
The impact of Covid-19 has impacted the asset quality and profitability of the banks and disrupted economic growth and business conditions globally. In one form of the decline in the economic sector, many members of society, including bank debtors, have lost their livelihoods. The enhancement of non-performing loans experienced by National Banks has resulted in banks losing their ability to generate optimal profit from bank operations so that the bank was always in a healthy, liquid, solvent, and profitable state. The Financial Services Authority issued several Financial Services Authority Regulations during 2020 to make sure that the bank can control bad credit of debtors affected by the Covid-19 outbreak. This study aimed to identify and analyze the impact of Financial Service Authority regulations on the quality of banking credit in improving the Indonesian economy amid the Covid-19 pandemic. This study used a qualitative approach with a critical thinking analysis method. The results of this study concluded that the impact of Financial Services Authority regulations on the quality of banking credit in improving the Indonesian economy amid the Covid-19 pandemic has been shown by the stability of the financial system, which was still well maintained the efforts of the Financial Services Authority to support the national economic recovery policy by Government of Indonesia.
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