The Role of Monetary Instruments to Financial Market in the Pandemic Covid Era

Purpose: This paper aimed to analyze the financial market reaction towards monetary instruments during the pandemic covid era. We employ Malaysian data. Methodology: We develop the financial market into three models, namely the interbank money market, bond market, and stock market. We used ordinary least squares as the research methodology. The type of data used is a monthly time series from January 31, 2019, to June 30, 2021. Findings: The study found that the dynamics of monetary policy through policy interest rates and reserve requirements have a significant effect on financial markets in Malaysia, particularly on the interbank money market and bond market. Meanwhile, when it comes to the COVID-19 pandemic, government bond yields are influenced by the implementation of the minimum reserve policy. Originality/Value: We focus on dynamic monetary instruments in Malaysia. The main instruments are the overnight policy rate and reserve requirement ratio. We employ the linkage of covid and monetary instruments as an independent variable to capture the effect of monetary policy in the pandemic covid era

PEMBERDAYAAN PKK MENINGKATKAN USAHA KUE KHAS SUMATERA SELATAN

Pengabdian masyarakat yang dilakukan oleh dosen fakultas ekonomi Universitas Sriwijaya beserta mahasiswanya ini bertujuan untuk memperkuat daya saing usaha kue khas daerah Sumatera Selatan dengan meningkatkan kualitas produk melalui pemberdayaan ibu-ibu PKK. Kegiatan dilakukan dengan metode pelatihan ilmiah berupa ceramah/diskusi tentang pentingnya menghasilkan produk yang berkualitas dan praktek langsung pembuatan kue. Tingkat pemahaman diukur dengan uji kompetensi yang berisi pertanyaan tentang bahan dan proses pembuatan kue dengan memberikan skor pada rentang 0-100. Selanjutnya dilakukan analisis statistik deskriptif berupa skor rata-rata, distribusi frekuensi jawaban yang benar untuk hal-hal yang berkaitan dengan nama bahan dan proses pembuatan kue. Hasil dari observasi ini menunjukkan bahwa target sangat antusias dalam memahami materi yang diberikan. Hasil evaluasi tertulis tingkat pemahaman tentang bahan dan proses pembuatan kue masih rendah, dengan rata-rata 30,5. Praktik pembuatan kue yang dilakukan peserta menunjukkan hasil dengan skor rata-rata 6 (skala 0-10). Melalui pemberdayaan ini, dibangun motivasi yang lebih tinggi untuk meningkatkan kualitas kue khas daerah yang dihasilkan. Dilengkapi dengan kumpulan buku resep yang dapat dijadikan referensi untuk meningkatkan pemahaman akan standar kualitas yang kompetitif. Kata kunci: pemberdayaan, daya saing, kue khas daerah, kualitas produk, pelatihan ABSTRACT Community dedication held by lecturers of the economics faculty of Sriwijaya University and their students aims to strengthen the competitiveness business of special cakes from the South Sumatra region by improving product quality through empowering PKK mothers. The activity was carried out using scientific training methods in the form of lectures/discussions about the importance of producing quality products and direct practice of making cakes. The level of understanding is measured by a competency test which contains questions about ingredients and the process of making cakes by giving a score in the range of 0-100. Furthermore, descriptive statistical analysis was carried out in the form of the average score, the frequency distribution of the correct answers for matters relating to the name of the ingredients and the process of making cakes. The results from this observation showed that the target was very enthusiastic about understanding the material given. The results of the written evaluation in the level of understanding about the ingredients and the process of making cakes are still low, with an average of 30,5. The practice of making cakes by the participants showed results with an average score of 6 (scale 0-10). Through this empowerment, higher motivation is built to improve the quality of the local speciality cakes produced. Equipped with a collection of recipe books that can be used as a reference to increase understanding for competitive quality standards. Keywords: empowerment, competitiveness, the local speciality cakes, quality of product, trainin

The US Quantitative Easing and Indonesian Financial market. Does it matter?

After financial crisis 2008, the central bank of the United States, known as Federal Reserve or the Fed, injected unprecedented amount of liquidity through large-scale asset purchases (LSAPs), which is also called as quantitative easing (QE). Lower long-term bond yields in the U.S. related to QE also made investors switched to other investment assets in the emerging market economies (EMEs) such as corporate bonds and privately issued securities. Indonesia, as one of the important EMEs in the world, also received higher capital inflows during the Fed’s QE period. Therefore, this study attempts to analyze the impact of the Fed’s quantitative easing policy towards volatility of financial sector in Indonesia by using Vector Autoregressive (VAR) model. Financial sector in this study focused on stock market, bond market and exchange rate market. The result shows that the Fed’s quantitative easing plays greater role in explaining Rupiah exchange rate, compared to Indonesia composite index and long-term bond yields. This study found negative and significant relationship between US money supply and exchange rate. It could relate to the increasing of Indonesia composite index so that demand for Rupiah exchange rate increased

The Monetary Policy Transmission Mechanism In Indonesia: a Comparative Analysis

This study analyses a comparison of the role monetary policy transmission mechanism between the interest rate channel and the exchange rate channel in Indonesia for the 2011-2020 period. The type of data is quantitative with secondary data sources, namely the Central Bureau of Statistics and Bank Indonesia. The analytical method used is the Error Correction Model (ECM). The results show that the exchange rate channel is more effective than the interest rate channel because all variables in the exchange rate channel, both in the short and long term, have a significant effect. Exchange rate and inflation variables can give a positive response to economic growth, while net exports and real interest rates give a negative response. The contribution made by the exchange rate channel is 99 percent in the short term and 72.83 percent in the long term. Meanwhile, on the interest rate channel both in the short and long term, the variable deposit rates, real interest rates, inflation, and lending rates have a significant effect on giving a negative response to economic growth. However, loan interest rates are not significant in the short term. Meanwhile, loan interest rates provide a positive response in the long term. The contribution made by the interest rate channel is 65.07 percent in the short term and 86.38 percent in the long term

PENDAMPINGAN MILENIAL HOBI ZAKAT MELALUI PENGAPLIKASIAN ZAKAT DIGITAL BAGI REMAJA MASJID

ABSTRAKKegiatan pengabdian kepada masyarakat (PKM) ini memiliki tujuan untuk memberikan pemahaman mengenai zakat dan manfaat teknologi komunikasi guna mengaplikasikan zakat. Tim Pengabdian Fakultas Ekonomi UNSRI telah melaksanakan pendampingan kepada generasi milenial yang hobi zakat. Pelaksanaan kegiatan berlangsung 1 hari pada Jumat, 15 November 2019. Peserta terdiri dari 30 Remaja Mushola Ukhuwah Fakultas Ekonomi. Metode pelaksanaan kegiatan berupa memberikan ceramah dan tutorial. Tim PKM menyampaikan edukasi berkenaan dengan zakat, manfaat zakat  dan jenis zakat. Peserta pendampingan diberikan tutorial penggunaan zakat digitial dan dapat menghitung zakat dengan aplikasi kitabisa.com. Untuk mengevaluasi kegiatan PKM, peserta pemdampingan diminta untuk mengisi kuisioner yang terkait dengan pemahaman materi. Berdasarkan hasil kuesioner, pendampingan zakat yang telah dilaksanakan menunjukkan pemahaman peserta yang telah mencapai 71%. Capaian ini diharapkan dapat meningkatkan penggunaan zakat digital sebagai metode pembayaran zakat bagi generasi millennial. Kata kunci : zakat; milenial; zakat digital. ABSTRACTThe community service activity (PKM) aims to provide an understanding of zakat and the benefits of communication technology to apply zakat. The team of Faculty of Economics UNSRI has provided assistance to the millennial generation who like zakat. The activity was carried out for 1 day on Friday, November 15, 2019. The participants consisted of 30 Youths of the Ukhuwah Mosque, Faculty of Economics. The method of carrying out activities is in the form of giving lectures and tutorials. The PKM team delivered education regarding zakat, the benefits of zakat and the types of zakat. Mentoring participants are given tutorials on the use of digital zakat and can calculate zakat with the kitabisa.com application. To evaluate PKM activities, mentoring participants were asked to fill out a questionnaire related to understanding the material. Based on the results of the questionnaire, the zakat assistance that has been implemented shows the participants' understanding which has reached 71%. This achievement is expected to increase the use of digital zakat as a method of paying zakat for the millennial generation. Keywords : zakat; millennial; digital zakat

Green credit and bank performance in Indonesia

A new challenge for the banking sector In Indonesia is integrating social aspects in firm performance reports. Green Credit is expected to substantially drive capital allocation to sustainable development which eventually will impact the pattern of production and consumption in the future. In this study, using commercial bank data in Indonesia, we estimate an empirical model of the effect of green credit on bank performance in Indonesia during the period 2015 to 2021. We employ a panel dynamic model using the Generalized Method of Moments (GMM). We differ bank performance twofold which are return on asset (ROA)). The main finding shows that green credit significantly abates bank performance since some green economy projects focus on the public welfare. Therefore, green credit could not result in high returns. The government should formulate a policy of providing incentives to banks that offer green credit. Thus, it could encourage the willingness of banks to lend more funds to the green economy

The COVID-19 Pandemic: What Factors can Affect BUMN-20 Stock Return in Indonesia?

The purpose of this study is to analyze the effect of the policy rate, inflation, exchange rate, and world oil prices on the stock return of 20 companies listed on the State-Owned Enterprises of Indonesia (BUMN-20) Index from July 2016 to June 2021. We divided into three periods that are all periods, before and during pandemic COVID-19. The population in this study is companies listed on Indonesia Stock Exchange (IDX). The sample is determined by using purposive sampling with a total amount of 20 companies and total data is 846. This study used quantitative data analysis in the form of time-series data and documenting methods in obtaining the data. The analytical tools in this study are using multiple regression analysis. The result shows that the policy rate has a significant positive effect on stock returns, inflation and exchange rate have a significant negative effect on stock returns, and world oil prices do not appear any significant effect on the stock return of the BUMN-20 Index. While before and during the COVID-19 pandemic imply only an exchange rate that has a significant and negative effect on stock return. This implies that the COVID-19 pandemic does not appear a significant effect on the performance of BUMN-20 return

Non-Cash Instruments and Money Supply in Indonesia During Pandemic Covid-19

The emergence of the Covid-19 pandemic phenomenon at the end of 2019 caused non-cash transactions to increase, but several macro variables decreased. The study investigates the relationship between Non-Cash Transactions (through APMK and E-money proxies), National Income (GDP), Money Supply (M0), and Velocity of Money with the Vector Auto Regression method. The data was used from 2010 to 2021 at three different times, before Covid-19 and during Covid-19. Our result confirms that there was a relationship between money supply and non-cash transactions, the positive response occurred in all periods, and the negative response occurred during the Covid-19 pandemic. National income positively impacts money supply and velocity of money during all periods and Covid-19. It implicates that electronic money should be increased because it accelerates the circulation of money and can increase the flow of goods and services.How to Cite:Ferlicia, S., Suhel, S., & Andaiyani, S, (2022). Non-Cash Instruments and Money Supply in Indonesia During Pandemic Covid-19. Signifikan: Jurnal Ilmu Ekonomi, 11(2), 383-398. https://doi.org/10.15408/sjie.v11i2.26491.JEL Classification: E41, E5