Understanding the Complexity of Banking Loan Absorption during Pandemic in Indonesia: A Conceptual Model

Jeffry Kurniawan Zheta; Andri D. Setiawan; Akhmad Hidayatno

doi:10.1145/3468013.3468649

Understanding the Complexity of Banking Loan Absorption during Pandemic in Indonesia: A Conceptual Model

Jeffry Kurniawan Zheta, Andri D. Setiawan, Akhmad Hidayatno

Department of Industrial Engineering

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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.

Original language	English
Title of host publication	Proceedings of the 4th Asia Pacific Conference on Research in Industrial and Systems Engineering
Subtitle of host publication	Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021
Publisher	Association for Computing Machinery
Pages	506-509
Number of pages	4
ISBN (Electronic)	9781450390385
DOIs	https://doi.org/10.1145/3468013.3468649
Publication status	Published - 25 May 2021
Event	4th Asia Pacific Conference on Research in Industrial and Systems Engineering: Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021 - Depok, Indonesia Duration: 25 May 2021 → …

Publication series

Name	ACM International Conference Proceeding Series

Conference

Conference	4th Asia Pacific Conference on Research in Industrial and Systems Engineering: Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021
Country/Territory	Indonesia
City	Depok
Period	25/05/21 → …

Keywords

Increasing bank loan absorption
Indonesia
Model Conceptualization
Pandemic
System Dynamics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1145/3468013.3468649

Cite this

Zheta, J. K., Setiawan, A. D., & Hidayatno, A. (2021). Understanding the Complexity of Banking Loan Absorption during Pandemic in Indonesia: A Conceptual Model. In Proceedings of the 4th Asia Pacific Conference on Research in Industrial and Systems Engineering: Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021 (pp. 506-509). (ACM International Conference Proceeding Series). Association for Computing Machinery. https://doi.org/10.1145/3468013.3468649

Zheta, Jeffry Kurniawan ; Setiawan, Andri D. ; Hidayatno, Akhmad. / Understanding the Complexity of Banking Loan Absorption during Pandemic in Indonesia : A Conceptual Model. Proceedings of the 4th Asia Pacific Conference on Research in Industrial and Systems Engineering: Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021. Association for Computing Machinery, 2021. pp. 506-509 (ACM International Conference Proceeding Series).

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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.",

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Zheta, JK, Setiawan, AD & Hidayatno, A 2021, Understanding the Complexity of Banking Loan Absorption during Pandemic in Indonesia: A Conceptual Model. in Proceedings of the 4th Asia Pacific Conference on Research in Industrial and Systems Engineering: Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021. ACM International Conference Proceeding Series, Association for Computing Machinery, pp. 506-509, 4th Asia Pacific Conference on Research in Industrial and Systems Engineering: Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021, Depok, Indonesia, 25/05/21. https://doi.org/10.1145/3468013.3468649

Understanding the Complexity of Banking Loan Absorption during Pandemic in Indonesia: A Conceptual Model. / Zheta, Jeffry Kurniawan; Setiawan, Andri D.; Hidayatno, Akhmad.
Proceedings of the 4th Asia Pacific Conference on Research in Industrial and Systems Engineering: Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021. Association for Computing Machinery, 2021. p. 506-509 (ACM International Conference Proceeding Series).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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Zheta JK, Setiawan AD , Hidayatno A. Understanding the Complexity of Banking Loan Absorption during Pandemic in Indonesia: A Conceptual Model. In Proceedings of the 4th Asia Pacific Conference on Research in Industrial and Systems Engineering: Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021. Association for Computing Machinery. 2021. p. 506-509. (ACM International Conference Proceeding Series). doi: 10.1145/3468013.3468649

Understanding the Complexity of Banking Loan Absorption during Pandemic in Indonesia: A Conceptual Model

Abstract

Publication series

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Keywords

UN SDGs

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