FINTECH, BANKS, AND THE COVID-19 PANDEMIC: EVIDENCE FROM INDONESIA

This study investigates the relationship between fintech and banks and how this relationship is affected by the COVID-19 pandemic. We use monthly stock data of all banks consistently listed on the Indonesian Stock Exchange from February 2018 to March 2021. For fintech data, we use a total of four proxies that encompass both lending and borrowing aspects of peer-to-peer lending fintech. To provide robust results, we use five model specifications. Furthermore, we also estimate models using both the fixed effect and the two-step system generalized method of moments estimators. Our estimates indicate a relatively less negative impact of fintech on bigger banks. This relationship is further exemplified during the COVID-19 pandemic period. We argue that these findings have significant implications for the Indonesian financial authorities’ open banking strategy and for the future of the Indonesian financial system in general

The Impact of Industry Concentration on Stability: The Case of Indonesian Islamic-Commercial Banks

This study aims at investigating the impact of the banking industry’s concentration on the stability of Islamic commercial banks in Indonesia. This study used a single country setting of 14 Islamic-commercial banks in Indonesia from 2011 to 2020. The data utilized in this study comprised all Islamic-commercial banks' assets in Indonesia, excluding commercial banks with Islamic business units. The influence of concentration level on the stability of Islamic-commercial banks was investigated using a panel data model. According to Hausman's test, the fixed-effect model is more suitable than the random-effect model. The findings indicate that the “concentration-stability” hypothesis was supported-robust using two concentration level measurements: CR4 and HHI. It is implied that banks tended to be more stable at the higher competition level. From the bank’s specific characteristics, only the cost-to-income ratio significantly influenced the bank's stability, as expected. Other bank-specific characteristics, such as bank size, credit risk, and income diversity, had no substantial influence on observed bank stability. A robustness check was performed by estimating new models that included multiple control variables that did not change the effect of concentration level on the bank’s stability. This study adds to the literature by demonstrating the “concentration-stability” hypothesis in the Indonesian Islamic-commercial banking industry. Moreover, this study’s results confirm the previous study’s findings using different methods and measures of industry concentration. In addition, this study is relevant in the context of the merger action of three large Islamic commercial banks

PELATIHAN LITERASI KEUANGAN DIGITAL KEPADA PENGUSAHA MIKRO DI KABUPATEN BANDUNG, JAWA BARAT

The development of the digital Financial Services Sector (SJK) is very likely to threaten people who have minimal financial and digital literacy because they can be trapped in a vortex of debt. One group that is vulnerable to this is the micro-business group. This Community Service Program supports the National Strategy for Indonesian Financial Literacy (SNLKI) which was stipulated in POJK No.76 of 2016 to carry out financial education activities to improve public financial literacy. The focus of this activity is the micro-business group in Bandung Regency. This community service activity aims to increase understanding of economic and digital literacy through educational programs. The activities method through online training for small and medium entrepreneurs in Bandung Regency. This activity divide into three training sessions covering the motivation for digital financial literacy, financial health diagnostics using digital platforms, financial planning, making the proper budget, preparing emergency funds, and getting to know digital financial products and services. Based on a survey conducted on training participants, it was found that this training provided new knowledge or skills that were important to them, namely digital financial platforms, the benefits of financial planning, and how to manage finances properly, and realizing that emergency funds needed to be prepared since the beginning. Based on the survey results after the training, it can conclude that this educational activity enhances awareness to be competent in managing finances is essential. This type of training recommends regularly carrying to improve public financial literacy. --- Perkembangan Sektor Jasa Keuangan (SJK) digital sangat mungkin menjadi ancaman bagi masyarakat yang minim literasi keuangan dan digital karena bisa terjebak dalam pusaran permasalahan keuangan. Salah satu kelompok yang rentan akan hal ini adalah kelompok usaha mikro. Tingkat literasi keuangan yang rendah dapat mengakibatkan pengambilan keputusan yang kurang tepat, terutama terkait pada pengelolaan keuangan usahanya. Kegiatan pelatihan ini untuk mendukung program Strategi Nasional Literasi Keuangan Indonesia (SNLKI)  yang ditetapkan pada POJK No.76 tahun 2016 untuk melakukan kegiatan edukasi keuangan guna meningkatkan literasi keuangan masyarakat. Kegiatan pengabdian kepada masyarakat ini bertujuan untuk meningkatkan pemahaman literasi keuangan dan digital yakni melalui program edukasi sesuai kebutuhan bagi para pelaku usaha. Metode pelaksanaan kegiatan melalui pelatihan kepada para pelaku usaha kecil dan menengah di Kabupaten Bandung yang dilakukan secara daring. Kegiatan ini terbagi kedalam tiga sesi pelatihan yang mencakup motivasi akan pentingnya melek keuangan digital, diagnosa kesehatan keuangan menggunakan platform digital, pembuatan perencanaan keuangan, membuat anggaran yang tepat, menyiapkan dana darurat dan mengenali produk dan jasa keuangan digital. Berdasarkan survei yang dilakukan kepada peserta pelatihan diperoleh hasil bahwa pelatihan ini memberikan pengetahuan atau keterampilan penting yang baru bagi mereka yakni tentang platform keuangan digital, manfaat dari perencanaan keuangan dan mengetahui cara pengelolaan keuangan dengan baik serta menyadari bahwa dana darurat perlu dipersiapkan sejak dini. Berdasarkan hasil survei yang dilakukan pasca pelatihan dapat ditarik sebuah kesimpulan bahwa kegiatan edukasi ini memberikan penyadaran penyadaran untuk menjadi cerdas dalam pengelolaan keuangan adalah penting. Pelatihan sejenis ini disarankan dalam dilakukan secara berkesinambungan untuk meningkatkan literasi keuangan masyarakat

PENINGKATAN PEMAHAMAN PROGRAM BANTUAN DAN INSENTIF BAGI PELAKU USAHA UMKM, SERTA PERAN DIGITALISASI DI ERA PANDEMI COVID-19 DAN SESUDAHNYA

Abstrak: Tujuan Program Pengabdian Kepada Masyarakat ini adalah untuk peningkatan pemahaman atas program bantuan dan insentif pemerintah untuk pelaku UMKM serta peran pemanfaatan digitalisasi untuk peningkatan usaha di masa pandemi COVID-19 dan sesudahnya. Metode pelaksanaan kegiatan berbentuk sosialisasi dan penyuluhan. Kegiatan ini diikuti oleh sebanyak 52 pelaku usaha. Berdasarkan analisis awal kebutuhan para peserta diperoleh informasi bahwa upaya yang paling banyak telah dilakukan oleh peserta untuk mempertahankan usaha adalah peningkatan promosi/pemasaran dan inovasi produk. Sementara upaya mengakses bantuan dari pemerintah memiliki persentase paling rendah. Hal ini menarik untuk digali lebih jauh apakah terdapat kendala yang dihadapi ketika mengakses, kurang tersosialisasikannya program bantuan ataukah para pelaku ini enggan untuk mengakses bantuan. Sebanyak 13.5% pelaku usaha pernah mengakses insentif pemerintah, yakni mengakses Bantuan Produktif Usaha Mikro (BPUM). Hasil dari kegiatan ini diketahui sebanyak 85% peserta mendapatkan peningkatan pemahaman dan pengetahuan mengenai program insentif dan bantuan untuk jenis, cara mengakses dan pemanfataannya. Serta sebanyak 95% meningkat pemahamannya terkait pemanfaatan digitalisasi untuk usahanya. Hasil evaluasi kegiatan dilakuan melalui kegiatan interaktif tanya jawab selama kegiatan, game kuis serta umpan balik peserta melalui pengisian formulir online diakhir kegiatanAbstract: This community service program aims to improve SMEs’ knowledge on the COVID-19 government incentive programs for SMEs and on the importance of business digitalisation during and after the Pandemic. This community service program is conducted through a webinar. This activity was attended by 52 SMEs owners and operators. Based on the initial analysis of the needs of the participants, information was obtained that the most efforts made by the participants in maintaining their business were promotion/marketing improvement, product innovation. Meanwhile, efforts to access assistance from the government have the lowest percentage. It is interesting to explore further whether there are obstacles faced when accessing, lack of socialization of the aid program, or whether these actors are reluctant to access assistance. Of the 13.5% of business actors who access government incentives, most access the Micro Business Productive Assistance program (BPUM). The output of this activity is that 85% of the participants get an increase in understanding and knowledge about incentive and assistance programs for the types, ways to access and use them. And as much as 95% increased their understanding regarding the use of digitization for their business. The results of the activity evaluation were carried out through interactive question and answer activities during the webinar, quiz games and participant feedback through filling out online forms at the end of the webinar

PENINGKATAN DAYA SAING DAN PRODUKTIVITAS MELALUI PELATIHAN WAWASAN BISNIS HIJAU BAGI UMKM

Abstrak: Tujuan Program Pengabdian Kepada Masyarakat ini adalah untuk peningkatan pemahaman atas wawasan binis hijau untuk pelaku UMKM untuk peningkatan usaha dan produktivitas. Metode pelaksanaan kegiatan berbentuk sosialisasi dan penyuluhan. Kegiatan ini diikuti oleh sebanyak 111 pelaku usaha. Berdasarkan analisis awal kebutuhan para peserta diperoleh informasi bahwa UMKM masih rendah dalam mengimplementasikan bisnis hijau. Sementara dorongan ke pelaku UMKM menjalankan usahanya yang mengimplementasikan bisnis hijau terus disosialisasikan. Hal ini menarik untuk digali lebih jauh apakah terdapat kendala yang dihadapi ketika mengimplentasikan, kurang tersosialisasikannya dan terbatasnya informasi. Masih terdapat sebanyak 41.4% pelaku usaha yang belum menerapkan bisnis hijau dalam proses bisnisnya. Hasil dari kegiatan ini diketahui seluruh peserta merasakan manfaat dari kegiatan ini yakni peserta mendapatkan peningkatan pemahaman dan pengetahuan mengenai wawasan bisnis hijau. Serta seluruh peserta meningkat kesadarannya akan pentingnya menjalankan bisnis dengan memperhatikan aspek aspek sustainability. Evaluasi kegiatan dilakukan melalui kegiatan interaktif tanya jawab selama kegiatan, game kuis serta umpan balik peserta melalui pengisian formulir online diakhir kegiatan. Berdasarkan hasil evaluasi diketahui bahwa pelaku UMKM merasakan manfaat dari pelatihan, dan mengharapkan adanya tindaklanjut dalam bentuk pendampingan dan pelatihan dengan topik yang mendukung bisnis hijau seperti pengenalan kemasan berbahan alami yang ramah lingkungan, pelatihan pemasaran hijau,dan pelatihan pengelolaan limbah.Abstract: This Community Service Program aims to increase understanding of green business insights for MSME actors to increase business and productivity. One hundred eleven business SMEs attended this training. Based on the initial analysis of the needs of the participants, information was obtained that SME's still needed to be higher in implementing green businesses. Meanwhile, encouragement for SMEs to run their companies that implement green enterprises continues to be socialized. It is interesting to explore further whether obstacles are encountered during implementation, lack of socialization, and limited information. 41.4% of business actors still need to implement green business in their business processes. The results of this training were known to all participants who benefited from this activity, namely, participants gained increased understanding and knowledge about green business. Also, all participants increased their awareness of the importance of running a business by paying attention to sustainability aspects. Evaluation of activities is carried out through interactive question-and-answer activities during activities, quiz games, and participant feedback by filling out online forms at the end of workouts. Based on the evaluation results, it is known that SMEs actors benefit from the training and expect follow-up in the form of assistance and training on topics that support green business such as the introduction of environmentally friendly natural packaging, green marketing training, and waste management training.