How the Rules of no.11/POJK.03/2020 Banking Restructuring Policy Improve Financial Performance? (Empirical Study of Islamic Banks in Indonesia)

The Covid-19 pandemic has significantly impacted the economy, including the banking industry. The im-pact on the banking industry is a decline in the health of banks. One form of bank soundness assessment can be seen from the movement of financial ratios, including Non-Performing Financing (NPF), Capital Adequacy Ratio (CAR), Return on Assets (RoA), and Operational Expenditure to Operating Income (BOPO), and Financing to Deposits Ra-tio (FDR). This study aimed to examine the impact of the implementation of banking restructuring policies on the fi-nancial performance of Islamic Commercial Banks in Indonesia. This study used an observation period of 36 months, calculated 1 year before and after the implementation of rules No.11/POJK.03/2020. The sampling method used purposive sampling with 119 observational data samples. Hypothesis testing used the independent Mann-Whitney t-test since the data were not normally distributed. The results showed that the banking restructuring policy could only improve the bank's financial performance, namely CAR and FDR, but not the ratio of NPF, ROA, and BOPO. The contribution of this study can be used as one of the basics for assessing the effectiveness of implement-ing government policies. Copyright © 2022- All Rights Reserved.

The impact of COVID-19 pandemic on business risks and potato commercial model

This study was aimed (1) to analyze the productivity, cost, and income of potato farming;(2) to analyze the risk of potato farming;and (3) to analyze the potato trade system at the level before and during COVID-19 pandemic. This study used a descriptive-quantitative research type. It was conducted in Banjarnegara Regency, Jawa Tengah Province, Indonesia. The data were collected through surveys, observations, and Focus Group Discussions. The unit of analysis is the farmers who plant potatoes. Data analysis was done descriptively. The results showed that there is no difference between the two marketing channels before and during pandemic. There are two channels of the trading system, namely farmer-collector-traders-wholesaler-exporter partners and farmer-collector-traders-wholesalers-retailers. However, the trading model maximizes the Agribusiness Sub Terminal (AST) as a potato trading agent that can provide direct price information, attract traders, and facilitate transactions and trading contacts. The trading model allows potato trading agents to provide direct price information, attract traders, and facilitate transactions and trading contacts. The implication of this study is to anticipate productivity risk and potato farming income risk through the AST function. This study contributes to the condition of farming before and during COVID-19 pandemic by comparing differences in productivity, costs, income, productivity risk, and income risk as well as the potato grading model.

“Impact of the COVID-19 pandemic and New Normal implementation on credit risk and profitability of Indonesian banking institutions”

This study aims to compare the credit risk and profitability of banks in Indonesia. For this, the descriptive-quantitative method is used. The sample collection is based on the purposive sampling method. The study involved 71 Indonesian banks listed on the Indonesian Stock Exchange and Financial Services Authority, both conventional and Sharia. The research data are secondary data that include published results of quarterly financial reports of both conventional and sharia banks obtained from the website of the Financial Services Authority or the official websites of banks. The profitability of banks in making profit is measured by the Return on Assets ratio. The method of analysis used is the paired sample t-test. The results show significant differences in nonperforming loans (NPL) before and after the COVID-19 pandemic in conventional banking. However, there is no significant difference in Sharia banking. Moreover, there is no significant difference in profitability before and after the new normal implementation. This study provides empirical evidence that Indonesia's banking restructuring policies to anticipate the impact of COVID-19 did not work optimally. The study is expected to help bank managers and the Financial Services Authority as a basis for evaluating the implementation of government policies to restructure the banking system. © Sri Wahyuni, Pujiharto, Siti Nur Azizah, Zulfikar, 2021