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Modeling the profitability of commercial banks in Indonesia

Economic Journal of Emerging Markets · Vol. ume (2016) · pp. 109–119

DOI
10.20885/ejem.vol8.iss2.art3
ISSN
2502-180X, 2086-3128
Published
2016-10-01
Publisher
Universitas Islam Indonesia
Language
eng

Abstract

This study examines the effect of lending on Micro, Small and Medium Enterprises (MSMEs) on the profitability of commercial banks in Indonesia. The profitability is measured as Return-on-Assets (ROA) and Return-on-Equity (ROE). It covers the period of 2011 to 2014 using a panel data regression. It finds that MSME loans have a positive impact on ROE. Other internal factors that significantly influence the profitability of banks are MSME’s NPL (non performing loan), the operational efficiency ratio (OER) and loan-to-deposit ratio (LDR), while external factors that significantly influence the profitability of banks are inflation, Gross Domestic Product (GDP) growth and the Bank Indonesia (BI) rate.

Keywords

Collaboration network of the authors

21 authors · 38 co-authorship links

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  • Universitas Halu Oleo
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
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Co-authorOrganisationJoint articles
Bambang JuandaAffiliation unknown2
Azka Azifah DienillahAffiliation unknown2
Noer Azam AchsaniAffiliation unknown1
Zenal AsikinAffiliation unknown1
Ossi FerliAffiliation unknown1
Haryadi HaryadiAffiliation unknown1
Putri MahestyantiAffiliation unknown1
Benny Robby KurniawanAffiliation unknown1
Nofrans Eka SaputraAffiliation unknown1
Yun Nina EkawatiAffiliation unknown1
Hermanto SiregarAffiliation unknown1
Astoeti Wahjoe WidiartiAffiliation unknown1
Sahara SaharaUniversitas Halu Oleo1
Puri MahestyantiAffiliation unknown1
Kristian Edo ZulfamyAffiliation unknown1
Julian Franklin SoselisaAffiliation unknown1
Reni LoboAffiliation unknown1
Riris RoiskaAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) http://journal.uii.ac.id/index.php/JEP/oai, first harvested 8 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">Modeling the profitability of commercial banks in Indonesia</dc:title>
	<dc:creator>Wulandari, Tri</dc:creator>
	<dc:creator>Anggraeni, Lukytawati</dc:creator>
	<dc:creator>Andati, Trias</dc:creator>
	<dc:subject xml:lang="en-US">loan</dc:subject>
	<dc:subject xml:lang="en-US">return on asset</dc:subject>
	<dc:subject xml:lang="en-US">return on equity</dc:subject>
	<dc:subject xml:lang="en-US">commercial bank</dc:subject>
	<dc:subject xml:lang="en-US">G21</dc:subject>
	<dc:description xml:lang="en-US">This study examines the effect of lending on Micro, Small and Medium Enterprises (MSMEs) on the profitability of commercial banks in Indonesia. The profitability is measured as Return-on-Assets (ROA) and Return-on-Equity (ROE). It covers the period of 2011 to 2014 using a panel data regression. It finds that MSME loans have a positive impact on ROE. Other internal factors that significantly influence the profitability of banks are MSME’s NPL (non performing loan), the operational efficiency ratio (OER) and loan-to-deposit ratio (LDR), while external factors that significantly influence the profitability of banks are inflation, Gross Domestic Product (GDP) growth and the Bank Indonesia (BI) rate. </dc:description>
	<dc:publisher xml:lang="en-US">Universitas Islam Indonesia</dc:publisher>
	<dc:date>2016-10-01</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.uii.ac.id/JEP/article/view/6005</dc:identifier>
	<dc:identifier>10.20885/ejem.vol8.iss2.art3</dc:identifier>
	<dc:source xml:lang="en-US">Economic Journal of Emerging Markets; Volume 8 Issue 2, 2016; 109-119</dc:source>
	<dc:source>2502-180X</dc:source>
	<dc:source>2086-3128</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.uii.ac.id/JEP/article/view/6005/5763</dc:relation>
	<dc:rights xml:lang="en-US">Copyright (c) 2016 Economic Journal of Emerging Markets</dc:rights>
</oai_dc:dc>