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This study delves into the influence of Peer-to-Peer (P2P) Fintech lending on bank performance in Indonesia, with a specific focus on its effects on Islamic banks both before and during the COVID-19 pandemic. Employing a fixed-effects model, unbalanced panel data from 121 banks, including 16 Islamic banks, were analyzed. The findings unveil a significant and positive impact of growth loan disbursement to borrowers from P2P lending on bank performance, particularly in terms of return on assets. Additionally, Islamic Banks exhibit a significant and favorable effect on overall bank performance. Conversely, the joint interaction between P2P lending and Islamic Banks demonstrates a negative and significant influence on Islamic bank performance, suggesting that while P2P lending may benefit conventional banks, it adversely affects Islamic banks. Furthermore, this negative impact is exacerbated during the COVID-19 period. These outcomes underscore the importance of collaboration or strategic alliances between P2P lending platforms and Islamic banks, particularly in the context of the COVID-19 pandemic.

The study aims to analyze how factors such as environmental attitude, subjective norms, perceived behavioral control, and environmental knowledge impact the willingness of Generation Z tourists in Indonesia to make green or environmentally friendly purchases. It also explores the moderating role of environmental knowledge in the relationship between environmental attitude and green purchase intentions. The analysis focuses on Generation Z respondents, totaling 543 individuals. The paper employs the structural equation modeling (SEM) method. The results show that when considered individually, consumer behavior, encompassing environmental attitude, subjective norms, and perceived behavioral control, exerts a significantly positive impact on green purchase intentions. These results suggest that tourists’ attitudes toward the environment, influence from family or friends, and the ability to control their actions are pivotal in fostering green purchase intentions while traveling. Furthermore, the study demonstrates a substantial positive correlation between environmental knowledge and tourists’ green purchase intentions. Additionally, environmental knowledge moderates environmental attitude, amplifying its positive effect on tourists’ green purchase intentions. This highlights the vital role of environmental knowledge, which not only stimulates green purchase intentions but also motivates tourists to adopt pro-environmental behavior by opting for eco-friendly products.

This study examines the relationship between liquidity, FinTech development, and credit risk in the Indonesian banking industry. Specifically, it investigates the impact of FinTech, particularly in peer-to-peer lending and payment systems, on credit risk in conjunction with liquidity. The analysis is conducted using panel data from 142 commercial banks in Indonesia over a 15-year period from 2004 to 2018. The results reveal that higher liquidity leads to a reduction in credit risk, whereas FinTech development is found to increase credit risk, particularly in small banks (BUKU 3 and BUKU 4) and private national banks. Notably, this study identifies that the impact of liquidity on credit risk is conditional on the level of FinTech development. Furthermore, the findings suggest that the effects of FinTech on credit risk are contingent on the bank’s characteristics and the economic environment. These results have significant policy implications for designing an inclusive financial framework in the digital era, especially in managing the risks associated with FinTech development. JEL Classification : G231, F31. R10.

This study aims to analyze the impact of the COVID-19 pandemic on insurance companies` performance. Data spanning 2018 to 2022 from the Wall Street Journal Database was employed, encompassing 1,931 companies across 65 countries. The research distinguishes between developed (808 insurers) and emerging markets (1,123 insurers) to identify more real consequences of the pandemic. The random effects model was utilized for regressions, which run in three stages. The dependent variables (Return on Assets and Return on Equity) and the independent variables (the COVID-19 pandemic and four firm-specific factors such as claim expenses, company size, leverage, and liquidity) were analyzed. In developed markets, the study confirms the significant negative consequences of the COVID-19 pandemic on insurance firms, resulting in a global decline in performance. Conversely, emerging markets reveal a different scenario where company size plays a substantial role in insurance company performance, particularly in return on assets, aligning with findings favoring larger insurance entities. However, when considering company size’s interaction with COVID-19, larger insurers in emerging markets experienced performance declines during the pandemic. While leverage significantly affects insurance firm performance in both market types, its interaction with the pandemic shows no substantial impact. Liquidity, as represented by cash holding does not significantly enhance performance, particularly in developed markets, but higher cash reserves during the pandemic negatively affect performance, primarily in emerging markets. These findings provide insights for insurance company managers to develop adaptive strategies amid evolving market conditions and potential crises, including pandemics like COVID-19.

The primary goal of this study is to investigate the impact of social aid expenditures on the proportion of poor people in Indonesian provinces, as well as the additional impact of the COVID-19 pandemic on poverty levels, with a particular emphasis on the interaction between social assistance spending and the pandemic’s effects. Focusing on 34 provincial governments in Indonesia from 2004 to 2022, the data were analyzed using the two-step GMM system. The results of this study indicate that social aid expenditures negatively and significantly impact the proportion of Indonesia’s population living in poverty. This demonstrates that a rise in social aid expenditures lowers Indonesia’s proportion of the impoverished population. The observed negative impact suggests a real decrease in the poverty rate as social aid expenditures rise. In the meantime, this study discovers a positive and noteworthy impact of the COVID-19 variable. This indicates that compared to the time prior to the COVID-19 pandemic, a larger percentage of Indonesians lived in poverty during the pandemic. Furthermore, social aid expenditures were unable to reduce the number of poor people in Indonesia during the COVID-19 period.

The purpose of this study is to investigate the impact of knowledge management on the performance of small and medium-sized enterprises during the COVID-19 period in Indonesia. Furthermore, the study also highlights the role of digital variables such as digital capability, digital orientation, and digital innovation as mediating variables. A total of 247 valid responses were collected for this study through the survey conducted among managers of SMEs in Indonesia. The collected data were analyzed using Structural Equation Modeling with the Partial Least Squares approach. The study’s findings revealed several significant insights. It established the positive impact of knowledge management on digital capability, digital orientation, and digital innovation during the COVID-19 pandemic. Additionally, the study identified digital capability as a mediating factor between knowledge management and SMEs’ performance. However, the full support for the mediating roles of digital orientation and digital innovation in the relationship between knowledge management and SME performance was not confirmed, suggesting potential context-specific variations. This implies that the influence of knowledge management on SMEs’ performance is mainly channeled through digital capability. The research underscores the importance of knowledge management and digital factors in shaping SMEs’ performance, particularly in the challenging context of the COVID-19 pandemic.

This study analyzes the impact of the COVID-19 pandemic on the performance of 944 Leisure, Arts, and Hospitality companies from 59 countries listed on global stock exchanges between 2018 and 2022. Using Ordinary Least Squares with robust standard errors, the study reveals a consistent and statistically significant negative impact of COVID-19 on the performance of firms. The results highlight the difficulties faced by companies in this industry during the pandemic. In addition, the study investigates the relationship between firm characteristics and company performance during the COVID-19 pandemic, revealing that company size, liquidity, and leverage play crucial roles in influencing firm performance across industries. Larger corporations exhibit greater resiliency, while greater liquidity facilitates better navigation of pandemic-induced obstacles. In contrast, companies with greater leverage experience more pronounced negative effects on their performance, highlighting the significance of debt management during a crisis. Based on these findings, policymakers are strongly urged to provide targeted assistance to Leisure, Arts, and Hospitality industries to address the challenges the pandemic poses effectively. Regulators should encourage the resiliency of larger firms and stress the importance of maintaining higher liquidity levels for financial stability. It is recommended that managers should prudently manage debt to limit pandemic repercussions and boost performance in the face of extraordinary challenges.

The primary objective of this study is to examine the connection between Generation Z Indonesian consumers’ perceptions of value for green products and their purchase intentions, with a supplementary investigation into how environmental concerns moderate the influence of perceived green value on their intention to purchase green products. Between June and December 2021, a probability sampling technique, specifically stratified random sampling, was used to select a sample of 543 Indonesian Generation Z consumers. The data were analyzed using a variance-based method, namely partial least squares, within the context of structural equation modeling. The analysis reveals that functional value, conditional value, and environmental concern significantly and positively affect the intention to purchase green products. This indicates that Generation Z consumers are more inclined to choose green products when they perceive them to have good functional value, when specific conditions or requirements support the purchase, and when they have a high environmental concern. Moreover, environmental concern moderates the effect of social value on the intention to purchase green products. This suggests that more environmentally conscious consumers are more likely to be influenced by social value benefits when deciding to buy green products, highlighting the complex interplay between environmental and social motivations in shaping consumer behavior towards sustainability.

This study examines the impact of digital capabilities and digital orientation on the digital transformation and digital innovation of small and medium enterprises (SMEs) during the COVID-19 pandemic. In addition, this study assesses how the role of digital transformation and digital innovation mediates the relationship between digital capabilities, digital orientation, and SME performance during the COVID-19 pandemic. Using a sample of 247 SMEs managers, data were analyzed using the structural equation modeling with a partial least square approach. The findings demonstrate the significant and positive influence of digital capability and orientation on SMEs’ digital transformation and innovation during the pandemic. Additionally, the study confirms that digital transformation and innovation positively affect SMEs’ performance during the pandemic. Furthermore, the study reveals that digital transformation and innovation mediate the relationship between digital orientation and capability on SMEs’ performance during the pandemic. However, digital innovation was not found to significantly mediate the link between digital capability and SMEs’ performance.

This study investigates whether village funds, village-owned enterprises (henceforth, BUMDes), and village original income in Indonesia (PADes) enhance rural development. We employ three empirical methodologies to analyze data collected from 361 districts across Indonesia. These methods encompass cross-section regression, Difference-in-Difference (DID) technique, and Structural Equation Model (SEM)-based mediation analysis. The findings show that village funds positively and significantly impact rural development (measured using the village development index). However, the impact of BUMDes on rural development shows weak evidence. The quasi-experiment also reveals that districts with higher funding for their villages do not experience greater improvements in the village development index between 2016 and 2020. Furthermore, our study indicates that PADes play a crucial role in determining rural development, either directly or as a mediator for village funds and BUMDes. Policymakers should monitor the allocation of village funds to evaluate future allocation policies. Additionally, PADes performance is important for determining village fund transfers and development progress.

This study investigates a scarce case of the effect of innovation by local government on development performance using district level data in Indonesia. We use the accumulation number of innovations (the quantity side) produced by each district during 2015–2022 period according to the top 99 nominations listed by the Ministry of Administrative and Bureacratic Reform, the Republic of Indonesia. We, alternatively, also use measure of innovation based on “the quality side” by applying regional innovation index. The descriptive results, not surprisingly, show that districts situated in Java and Sumatra Islands have had greater productivity in either collected innovations nomination number or index of regional innovation compared to those situated in Kalimantan and East Region in Indonesia. In this paper, we employ cross-sectional ordinary least squares (OLS) and two-stage least squares (2 S LS) approaches and find positive and significant impact of innovation on each development proxy used (growth in real per capita local GDP and the average of Inclusive Development Economic Index (IDEI)). Implementing the proportion of locals attaining higher education and geographical distance as instruments, our 2SLS estimator also confirms that public-sector innovations play as a positive driving factor on development outcomes. This study offers its novelty by providing empirical evidence of the effect of innovation within government organization on development for Indonesia's case where none has been found before.

This study provides a comprehensive analysis of the global impact of COVID-19 on energy sector companies, taking into account company characteristics, market distinctions (developed and emerging markets), and sector differentiations (fossil fuels and alternative fuels). By examining financial report data from 1252 companies across 64 countries during the period 2018–2022, the study reveals a negative influence of COVID-19 on the performance of energy sector companies across all market and sector categories. Importantly, the findings highlight the significant role of company characteristics, including firm size, liquidity, and capital structure, in shaping the performance outcomes of energy sector companies.

Small and medium-sized enterprises (SMEs) play a vital role in economic development and sustainability. In Indonesia, SMEs account for a significant portion of the economy but face challenges in adapting to eco-innovation practices. To address this issue, this study examines the role of eco-regulation and government support in promoting eco-innovation adaptation among SMEs in Indonesia. We also explore the moderating effect of eco-environmental factors, including eco-customers, eco-managerial, eco-competition, and eco-process innovation. We collect data from 859 SMEs in Indonesia and use the Structural Equal Modeling-Partial Least Square (SEM-PLS) method to analyze the data. We measure eco-regulation and government support as independent variables and eco-environmental factors as moderating variables. We use eco-innovation adaptation as the dependent variable. Our results show that eco-regulation and government support have a positive effect on eco-environmental factors, except for eco-customers. We also find that eco-environmental factors have a positive impact on eco-innovation adaptation. Furthermore, we find that eco-regulation and government support indirectly influence eco-innovation adaptation through the mediation of eco-environmental factors. In conclusion, our study highlights the importance of eco-regulation and government support in promoting eco-innovation adaptation among SMEs in Indonesia. We find that eco-environmental factors mediate the relationship between eco-regulation and government support and eco-innovation adaptation. Our study provides valuable insights for policymakers and practitioners seeking to enhance SMEs' eco-innovation practices and promote sustainable development.

Objectives: All businesses worldwide, especially small and medium-sized organizations, are now concerned about environmental degradation. Eco-innovation and environmental collaboration are expected to be the driving forces for saving the environment and the performance of companies. Therefore, this study aimed to ascertain how eco-innovation and environmental cooperation affect the financial, social, and environmental performance of SMEs. This study also explored environmental collaboration as a moderating variable for the effect of eco-innovation on the performance of SMEs. Methods/Analysis: Data from 300 small and medium-sized enterprises of Creative Home Décor were analyzed using structural equation modeling. Findings: Eco-innovation is necessary to improve the performance of Indonesia's SMEs. Environmental collaboration has a beneficial and substantial effect on the performance of the environment and society. Regarding environmental collaboration as a moderating variable, this study identified a positive and statistically significant coefficient regulating the relationship between financial performance and eco-innovation. Novelty /Improvement. The novelty of this research lies in its focus on the impact of eco-innovation and environmental collaboration on the performance of SMEs, particularly in developing countries such as Indonesia, during the COVID-19 pandemic. The study also contributed to the theoretical and empirical understanding of eco-innovation in developing countries and highlighted the importance of environmental collaboration in enhancing the social and environmental performance of SMEs. Additionally, this paper provided empirical and theoretical contributions on the role of environmental collaboration as a moderating variable that is particularly improving the performance of Indonesia's SMEs in Creative Home Décor during the COVID-19 pandemic. JEL Classifications: M12, L68, L25, L53, Q56 Doi: 10.28991/ESJ-2023-SPER-018 Full Text: PDF

This study aims to comprehensively analyze the impact of financial development on greenhouse gas emissions in Indonesia during the period from 2000 to 2019. Using ordinary least squares with robust standard errors, the study revealed a positive and significant relationship between financial development and total greenhouse gas emissions. The study revealed a positive and significant relationship between financial development and total greenhouse gas emissions by employing utilizing a comprehensive financial development index. The findings indicate that higher levels of financial development by employing utilizing a comprehensive financial development index led to increased greenhouse gas emissions. Moreover, sector-specific analyses demonstrated that financial development significantly and positively influences emissions across various sectors, including the energy sector, agriculture, forest, and other land uses, peatland fires, and waste. However, intriguingly, financial development was found to have a significant and negative impact on greenhouse gas emissions in the industrial processes and product use sector, suggesting its role in promoting sustainable practices and contributing to emissions reduction in this specific domain.

This study aims to comprehensively analyze the market reaction within the consumer staples sector towards the Russian invasion of Ukraine. With a sample size of 2376 companies operating in the consumer staples industry, the event study method utilizing cumulative abnormal return (CAR) is employed to measure market response. The findings reveal a significant negative impact of the invasion on the global consumer staples market, particularly in developed and emerging markets. All industries within the consumer staples sector exhibited adverse reactions both before and after the announcement, with the beverage and household product industry experiencing the most severe consequences compared to other sectors. Moreover, our study uncovers that NATO members showcased relatively lower reactions prior to the invasion but displayed stronger responses following the announcement. To the best of our knowledge, this research is the first to shed light on market reactions specifically within the consumer staples sector regarding this invasion. The implications of our findings hold relevance for policy makers, managers, and investors, guiding them in making informed decisions amidst wartime scenarios.

After restrictions on community activities caused by the COVID-19 pandemic were lifted, numerous businesses, including restaurants and cafes, have already resumed normal operations. Competition is also unavoidable. Thus, companies should motivate their managers to develop various operational strategies to increase customer satisfaction. This study aims to analyze the relationship between customer satisfaction and operational management activities, including layout, decoration, location, and cleanliness. In addition, it examines human resource management, food quality, and atmosphere as mediating variables. Data were obtained using an online questionnaire conducted between June and December 2021. A total of 1,068 clients of cafes and restaurants were selected as the participants using purposive random sampling. Data were evaluated using variance-based structural equation modeling. The results showed that operational management activities promote cafes and restaurants (p-value = 0.000). Furthermore, this study indicates the role of infrastructure elements, specifically human resource management, atmosphere, and food quality, as moderating variables on customer satisfaction (p-value = 0.000). Overall, the findings of this empirical study provide a theoretical contribution by emphasizing cafe and restaurant operational strategies that enhance customer satisfaction.

Objectives: The banking sector has been impacted more negatively by the COVID-19 pandemic. At the same time, bank concentration and capitalization stabilize banking systems during times of crisis. This study evaluated the monthly financial reports of all commercial banks in Indonesia to investigate the joint impact of the COVID-19 pandemic and bank concentration on bank stability. Moreover, this study was conducted to determine whether adequate capitalization could enhance the positive effect of the interaction between COVID-19 and bank concentration during the pandemic. Methods/Analysis: Using 108 commercial banks between March 2020 and May 2021, data were analyzed using the fixed-effects estimator with heteroskedasticity and within-panel serial correlations for robust standard errors. Several robustness checks were performed to ensure that the results were accurate and consistent. Findings: Subsequently, the impact of the pandemic and bank concentration was determined to be significant and adverse, though their interplay was strong enough to promote bank stability. This highlights the importance of adequate capitalization in enhancing the beneficial effects of the interaction between COVID-19 and bank concentration on bank stability. Novelty /Improvement: Hence, these findings contribute to the literature on bank stability and have important policy implications for the banking sector during this pandemic. JEL Classifications: E51, G20, G21. Doi: 10.28991/esj-2022-SPER-018 Full Text: PDF

This study aimed to investigate the critical aspects of Indonesia’s local government budget structure. The impact of the budget on local fiscal autonomy was also examined by separating the sample of provinces in Java Island and Bali versus Non-Java Island and Bali. The unbalanced panel data was collected on 34 Indonesian provinces from 2013 to 2020. The results showed that locally-generated revenue and general allocation funds positively affect the regional fiscal autonomy index. These results indicate that local revenue and general allocation funds have improved regional fiscal autonomy. When the provincial sample is separated, general allocation funds positively and significantly affect the regional fiscal autonomy index in the provinces of Java Island and Bali. Furthermore, locally-generated revenue, as well as general allocation and profit-sharing funds, play a significant role in increasing the regional fiscal autonomy index in provinces outside Java and Bali, such as Sumatra, Kalimantan, Sulawesi, and Papua. These findings suggest that different geographical conditions and infrastructure have varying effects on encouraging regional fiscal autonomy. This study invites policymakers to address the strengthening of regional authority to explore income sources and budgeting quality and evaluate intergovernmental fiscal relationships. AcknowledgmentThe authors express gratitude to the three anonymous reviewers and seminar attendees at Mulawarman University for their insightful comments.

During the COVID-19 pandemic, bank stability became a priority for the Indonesian Financial Services Authority and the government. Economic activity is expected to be restored by muffling the shocks caused by the COVID-19 outbreak. This paper investigates the influence of COVID-19 on banking stability by differentiating bank core capital size and ownership. Using data from 108 commercial banks in Indonesia for the period March 2020 and March 2021, the paper analyzes data using fixed effects regression. The results show that COVID-19 has a detrimental and significant effect on bank stability in Indonesia. Regardless of the size and ownership of a bank’s core capital, it was found that no bank is immune for a year to the severe implications of COVID-19. This condition was experienced by both state banks and private banks, large and small. To assist in the absorption of COVID-19 shocks, this paper proposes policies for regulators that include stimulus packages and countercyclical roles in the banking system via government-owned banks.

Foreign direct investment (FDI) inflows into developing countries play an important role in the dynamics of economic growth. Meanwhile, financial development (FDV) and corruption have been considered a determinant of FDI. Therefore, this study aims to assess the effect of FDV and corruption on FDI in developing countries. In addition, this study explores the combined impact of FDV and corruption on FDI. Furthermore, the data for 108 developing countries were collected from the World Development Indicators (WDI) of the World Bank from 1993 to 2017. The results showed that FDV has a positive and significant effect on FDI, while corruption does not have a statistically significant impact. This demonstrates that FDV has contributed to the growth of foreign investment and the important sources of financing for developing countries. However, the interaction between FDV and corruption has a negative effect on FDI. This implies that FDV followed by an increase in corruption tends to reduce FDI inflows. These results encourage policymakers to address issues regarding the joint impact of FDV and corruption on FDI in developing countries. AcknowledgmentThe authors would like to express their gratitude to three anonymous reviewers and seminar participants at Mulawarman University for their insightful comments.

Using a sample of 141 banks in Indonesia during the 2004–2018 period, we investigate the impact of financial technology (FinTech) firms on bank stability. We find that more FinTech firms tend to enhance bank stability regardless of types of FinTech firms and the measurement of bank stability. Meanwhile, we also find that small banks and non-listed banks tend to benefit more from the presence of FinTech firms. Specifically, small banks and non-listed banks exhibit lower riskiness and higher capital ratios following an increase in the number of FinTech firms. This paper, therefore, emphasizes that FinTech development might be beneficial for financial stability, particularly when FinTech companies with small banks or non-listed banks.

This paper examines the effect of economic freedoms on financial stability across banking industry in Indonesia. Using unbalanced panel data of Indonesian banks, the effect of economic freedom to financial stability is estimated using GMM approach covering the period of analysis from 2004 to 2018. The analysis is conducted by regression. The main model of economic freedom on financial stability is measured by ZSCORE and NPL, which include all sample banks in the first stage. This study also explores the effect base on different ownership type and size of the bank in the second and third stage, respectively. In addition, concentration ratio, bank size, efficiency, liquidity, and business diversification are included as control variables. The results indicate that economic freedom statistically has a positive and significant effect on financial stability as measured by ZSCORE. However, measurements with NPL showed dissimilar results. The findings have considerable implications for economic literature and policy practice.

Researchers have emphasized the role of e-commerce for small enterprises in improving their performance. However, there is limited evidence on the use of e-commerce by small enterprises, and e-commerce adopters and non-adopters dealing with COVID-19. Therefore, the purpose of this study is to investigate the differences in the impact of COVID-19 on income between small enterprises that are adopters and non-adopters of e-commerce. This study also explored the impact of restrictions on community activities, the intention to adopt e-commerce, and the types of assistance required by small enterprises due to the pandemic. Data were collected through an online questionnaire survey among small enterprises that operate in the culinary field (1,024 small enterprises in Indonesia). The data were analyzed using descriptive analysis, cross-tabulation, and the Mann-Whitney test. This study finds that non-adoption of e-commerce caused small enterprises to experience a decline in income, which worsened due to restrictions of community activities, compared to adopters of e-commerce. Therefore, to overcome this negativity, small enterprises were pushed to adopt e-commerce. Finally, working capital assistance is the main assistance required due to the pandemic both by e-commerce adopters and non-adopters. This study has significant implications for how small enterprises and governments may benefit from e-commerce dealing with extreme disruptions such as the COVID-19 pandemic. AcknowledgmentWe are grateful to Mulawarman University for providing us with the funding necessary to gather the necessary data for the study and complete this empirical investigation. We also would like to thank two anonymous reviewers and seminar participants at Mulawarman University for their helpful feedback.

This study aimed to investigate the effect of board structure on voluntary environmental and energy disclosure of listed firms in Indonesia. The study employed a one-step and two-step system generalized method of moments (GMM) using an unbalanced data panel of 356 non-finance companies. The findings showed that board size positively and significantly affected environmental and energy disclosure. Moreover, board independence negatively and significantly influenced environmental and energy disclosure, while women on board and CEO duality have an insignificant impact. The strategic implication showed that adding more members to the board of directors boosted voluntary environmental and energy disclosure.

This study explores whether ownership structure (comprising ownership concentration, foreign, managerial, and institutional ownership) affects intellectual capital disclosure (ICD) in Southeast Asia’s largest stock market and Indonesia’s emerging economy. The sample includes 323 public firms listed on the Indonesia Stock Exchange (IDX) from seven industries between 2008 and 2017, or 2,634 firm-year observations. Data were analyzed using the ordinary least squares (OLS) regression with robust standard errors. The results show that ICD is positively related to ownership concentration. A negative and substantial relationship was found for both foreign and managerial ownerships, while the institutional ownership variable had a negative and insignificant impact. Overall, the results show robust conclusions regarding the impact of the ownership structure on ICD. The findings of this investigation could be taken into account by capital market authorities such as the Indonesia Stock Exchange (IDX) to raise awareness of intellectual capital and improve ICD practices. Acknowledgment The researchers are grateful for the valuable responses from two unnamed reviewers and discussion respondents at Mulawarman University. We also thank the Indonesia Stock Exchanges (IDX) and The Indonesia Capital Market Institute for providing the annual report.

In this study, the interrelation between bank concentration and stability is examined, focusing on the joint impact of capital regulation and financial openness. Using the data from the Global Financial Development Database provided by the World Bank and the Index of Financial Freedom from The Heritage Foundation and The Wall Street Journal, a sample of five countries in Central Asia was obtained, specifically during 1993-2017. The results show that the relationship between bank concentration and stability supports the concentration-stability hypothesis. Moreover, higher concentration and well-capitalized banks increase financial stability. However, the effect of bank concentration and financial freedom on stability is negative and significant. Capital regulation and supervision from authority control in the financial sector need to be strengthened to solve financial instability.

Indonesian Banking Architecture Policies (API) since 2004 has resulted in the rising of banks concentration. This increase of banks concentration raises two opposing hypotheses,structure-conduct- performance (SCP) and efficient-performance hypothesis. SCP approach is a structural approach. This approach considers that the level of profits which the bank acquired is affected by the market structure and the degree of competition.The decreasing level of competition and the increasing in concentration in an industry will lead to increased profits for these industries.This study aims to prove, whether banks in Indonesia in 2009-2013 supportstructure-conduct-performanceor efficient-performance hypotheses. The sampling method used was purposive sampling. Using banks’ financial statement data sourced fromBank Indonesia, which then analyzed with panel data regression in e-views 8 program. It’s found that banks in Indonesia support the efficient hypothesis. However, the banks efficiency has yet encourage low interest practice and thus reducing the competitiveness of the Indonesian economy in the face ofASEAN Community 2015.

This study examined the impact of the crisis on bank lending in Indonesia. The crisis was also interacted with profitability and liquidity to see the impact of profitability and liquidity during the global economic crisis on bank lending in Indonesia. This study involves bank specific as control variable and macroeconomic variables. Using panel data, I constructed a panel of 1,372 bank-year observations for 98 banks in Indonesiain the period 2002-2015. The empirical results showed that the profitability proxyed from Return On Asset affected bank lending negatively, but this effect was relatively insignificant. The study also found a positive and significant impact between liquidity and bank lending in Indonesia. Meanwhile only GDP which had a significant impact on lending with a positive sign.

Mining sector plays important roles for Indonesian economic performance, especially in East Kalimantan. This study investigates: (a) whether economic linkages of the mining sector related with other economic sectors in East Kalimantan, (b) who gets benefit from such mining activities; (c) how is the impact of mining sector for rural and urban households; and (d) what happens if coal mining, oil and gas productions are completely depleted. The quantitative analysis framework using Input-Output and Social Accounting Matrix Tables in period 2009-2010 has been implemented as main data set. The result shows that mining sector was underdeveloped sector in East Kalimantan, including Kutai Kartanegara district. Activities from mining sector tended to give benefit for the owners of capital, which is larger than that benefit for workers employed. Structural Path Analysis (SPA) shows that urban households gain the greatest advantages from the activities of this sector. The result also shows that the total output decreased by 65.12% when the mining, oil and gas dissapeared. A drastic reducing income after mining and oil and gas era will have an impact on the decline in the purchasing power in the region. However, the interesting finding of this research shows that the loss of mining and oil or gas sectors actually increases the strength of employment multiplier by 19%.

The Indonesian Banking Architecture policy had increased banks’ concentration to strengthen their capitalstructure. Banks were forced to increase their capital so that banks consolidation might occur through mergers andor acquisitions. Based on these conditions, the purpose of this study was to analyze the impact of bank concentrationlevel to the performance and stability of the bank. Using the efficiency hypothesis, “concentration-stability”hypothesis, and “concentration-fragility” hypothesis, this study analyzed the entire conventional banks inIndonesia. The data used were secondary data from Bank Indonesia and the Central Bureau of Statistics from2003 to 2013, with panel data regression using eviews program. The results showed that banking industries inIndonesia supported the efficiency hypothesis and the “concentration-stability” hypothesis.

The global financial crisis of 2008 that hit many countries had become an important concern, especially thebanking industry in Indonesia. This was because first, the experience of the economic crisis of 1997-1998.Second, the nature of the crisis could spread to other countries. So this study aimed to examine empirically theimpact of the global economic contraction on the behavior of bank credit in Indonesia. Using panel data sourcefrom the Word Bank and Bank Indonesia Year 2004-2012, the data were analyzed with Dynamic Panel Datausing E-views program 8. The results showed that the global economic contraction had a significant effect onthe behavior of credit in foreign and joint venture banks in Indonesia in 2004-2012.