ABSTRACT
Indonesia experienced negative economic growth in the 2nd and 3rd quarters due to the COVID-19 pandemic. One of the government's efforts on economic recovery is the Pemulihan Ekonomi Nasional (PEN) Program. The program includes the placement of government funds in banks which are expected to be absorbed immediately to boost economic growth. The bank carries out its business function as a channel of funds for the people. However, increasing loan fund absorption by the community is arduous and not simple. The dynamic complexity of disbursing funds to the communities adds to the challenge of achieving objectives. One way to address this challenge is by uncovering the disbursing process's complexity, yet it is still got little attention. This paper aims to understand and analyze the complex structure of increasing bank loan absorption in Indonesia. With this aim, this paper contains an analysis of the increase in bank loan absorption with a holistic and systematic approach using a system dynamics approach. Many factors can influence the absorption of bank loans in Indonesian society. Furthermore, rigidity in risk management and technological strength are key factors in the form of bank intervention in increasing the absorption of bank loans but still have their risks to be anticipated.
- Cristea, M. and R. DRĂCEA, Does credit market accelerate economic growth in Romania? Statistical approaches. Finance–Challenges of the Future, 2010: p. 184-190.Google Scholar
- HUIDUMAC PETRESCU, C.E. and A. Pop, The Influence of Lending Activity on Economic Growth in Romania. Theoretical & Applied Economics, 2015. 22(4).Google Scholar
- Gong, D., T. Jiang, and L. Lu, Pandemic and bank lending: Evidence from the 2009 H1N1 pandemic. Finance Research Letters, 2020: p. 101627.Google Scholar
- Hardum, S.E., Penyerapan Dana PEN Capai Rp 87,083 Triliun. 2020.Google Scholar
- Alessandri, P. and M. Bottero, Bank lending in uncertain times. European Economic Review, 2020. 128: p. 103503.Google Scholar
- Thomas, R. and R.K. Vyas, A Comparative Analysis of Loan Recovery Strategy of Indian Banks. Prajnan, 2018. 47(1).Google Scholar
- Singgih, M.L., B. Syairudin, and T.T. Suhariyanto, Designing Citizen Business Loan Model to Reduce Non-Performing Loan: An Agent-based Modeling and Simulation Approach in Regional Development. APMBA (Asia Pacific Management and Business Application), 2015. 2(3): p. 144-153.Google Scholar
- Kaminskyy, А. and O. Petrovskyi, Consumer Lending in Banks: System Dynamics Modelling. Scientific Papers NaUKMA. Economics, 2019. 4(1): p. 48-53.Google Scholar
- Demirgüç-Kunt, A. and R. Levine, Financial structure and economic growth: A cross-country comparison of banks, markets, and development. 2004: MIT press.Google Scholar
- Stephanie Davis, R.S., Aadarsh Baijal, Alessandro Cannarsi, Nuno Carrilho Neves, Rohan Dhanuka, e-Conomy SEA 2020: Resilient and racing ahead - What marketers need to know about this year's digital shifts. Google and Temasek 2020.Google Scholar
- Meadows, D.H., Thinking in systems: A primer. 2008: chelsea green publishing.Google Scholar
- Sterman, J., System Dynamics: systems thinking and modeling for a complex world. 2002.Google Scholar
Index Terms
- Understanding the Complexity of Banking Loan Absorption during Pandemic in Indonesia: A Conceptual Model
Recommendations
Modeling Adoption of Electronic Money in Indonesia: Conceptual Approach for Less Cash Society Development
ICIBE '19: Proceedings of the 5th International Conference on Industrial and Business EngineeringElectronic money or virtual cash is rapidly becoming the currency of the world economy and its financial markets. Indonesia itself has seen keen to adopt this technology realizing that the young population of over 250 million people and 30.9% use mobile ...
A Portfolio Selection using Safety First Model for US Blue Chip and Top 30 Companies under NYSE list during COVID-19
IEIM 2021: 2021 The 2nd International Conference on Industrial Engineering and Industrial ManagementA stock is an investment wherein you purchase one of the company's stocks which by means is called a share. Most investors think that when they purchase a stock, it will go up the value. It will result also in to impact of an increase to the company's ...
The Role of the Financial Services Authority (OJK) in Preventing Illegal Fintech Landing in the COVID-19 Pandemic in Indonesia
Social Computing and Social Media: Design, User Experience and ImpactAbstractThis study seeks to examine the role of the Financial Services Authority and its efforts in overcoming public problems in the form of fintech lending or online loans in the era of the COVID-19 pandemic through the application of the e-commerce ...
Comments