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The Impact of Industry Concentration on Stability: The Case of Indonesian Islamic-Commercial Banks Santoso, Teguh; Firmansyah, Egi Arvian; Sapulette, Militcyano Samuel; Setiawan, Maman
International Journal of Islamic Economics and Finance (IJIEF) Vol 6, No 2 (2023): IJIEF Vol 6 (2), July 2023
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/ijief.v6i2.17892

Abstract

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.
Market share and efficiency: Causality test in Indonesian general insurance industry Jamil, Iqram Ramadhan; Setiawan, Maman
Jurnal Ekonomi & Studi Pembangunan Vol 24, No 1: April 2023
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/jesp.v24i1.17092

Abstract

This study aims to analyze the relationship between market share and technical efficiency in the Indonesian general insurance industry. The data for the period 2010-2020 is used, which was obtained from the Indonesian Financial Services Authority (OJK). The results show that efficient companies emerged from the category of industry possessing comparatively higher and lower market shares. Furthermore, the panel Granger-causality test indicates a one-way direction of causality, where only the market share has an impact on the technical efficiency score. The panel regression using the Feasible Generalized Least Square (FGLS) model shows that market share has a negative impact on technical efficiency scores. Other variables, such as the age of the industry, merger, and acquisition are listed in the stock exchange and do not have a significant effect on the efficiency score. Based on the aforementioned findings, it can be inferred that the quiet-life hypothesis is applicable within the Indonesian general insurance sector. Consequently, the government must foster competition among the businesses operating within the industry.
Assessing the Internal and External Factors Influencing Farmers’ Welfare Daulika, Putri; Fahrunsyah, Fahrunsyah; Syakhril, Syakhril; Saleh, Muhammad; Karno, Karno; Setiawan, Maman
Journal of Agriprecision & Social Impact Vol. 2 No. 3 (2025): November: JAPSI (Journal of Agriprecision & Social Impact)
Publisher : CV. Komunitas Dunia Peternakan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62793/japsi.v2i3.84

Abstract

Farmer welfare is indicated by the level of purchasing power, which is calculated based on the ratio between the price index received from agricultural products and the price index paid for household consumption and production inputs. This study aims to analyze the internal and external factors influencing farmers’ welfare in Kutai Kartanegara Regency. The research data is primary and secondary data with a mixed method. The analysis was conducted using multiple linear regression to identify the factors that significantly affect farmers’ welfare. The results show that income, commodity prices, household consumption, and agricultural input costs are significant determinants of farmers’ welfare. Income and commodity prices have a positive effect, while agricultural input costs have a negative effect. The coefficient of determination (R²) values of 81.70% for the food crop subsector and 64.67% for the plantation subsector indicate that these variables explain a large portion of the variation in farmers’ welfare in the study area. Increased income increases welfare, but if consumption expenditure and input costs increase more than the increase in income, then farmer welfare will actually decrease. There is a need for policies to stabilize agricultural product prices, reduce production costs, and increase farmer productivity in Kutai Kartanegara Regency by strengthening market access, providing affordable inputs, and implementing technology and training so that agricultural products have added value and farmer welfare increases.