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Impact of Digital Transformation on Profitability and Risk Taking: Evidence from Indonesian Commercial Banks for Period 2019 – 2025 RM Rahardjo Satrio Unggul; Dewi Hanggraeni; Indra Kusumawardhana
Jurnal Ekonomi, Teknologi dan Bisnis Vol. 5 No. 8 (2026): Jurnal Ekonomi, Teknologi dan Bisnis
Publisher : Al-Makki Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.57185/bxbe9y21

Abstract

The rapid digital transformation of the banking sector has become a strategic priority globally; however, its financial implications remain inconclusive, particularly in emerging economies. This study examined the relationship between digital transformation and bank performance outcomes, including profitability, risk-taking, and stability, among 45 commercial banks in Indonesia during the 2019–2025 period. Digital transformation was measured using the 20-item Digital Maturity Index (DMI20), which was constructed from annual report disclosures and aligned with the Financial Services Authority (Otoritas Jasa Keuangan [OJK]) regulatory framework. Using a quantitative panel-data regression approach with bank-clustered robust standard errors, this research analyzed unbalanced panel data consisting of up to 315 bank-year observations. The findings showed that digital maturity was not significantly associated with Return on Assets (ROA), Net Interest Margin (NIM), Non-Performing Loans (NPL), or Loan-to-Deposit Ratio (LDR). However, digital maturity exhibited a negative association with Return on Equity (ROE) and a positive association with the Loan-Loss Provision (LLP) ratio at the 10% significance level. Most notably, digital maturity demonstrated a positive and statistically significant relationship with the bank Z-score at the 5% significance level, indicating greater resilience against insolvency risk. These results suggested that the primary financial benefit of digital transformation in the Indonesian banking context was reflected in enhanced stability and risk governance rather than immediate profitability improvements. The study contributed to the literature by providing empirical evidence from an emerging economy using a comprehensive digital maturity measure aligned with regulatory standards. The findings have practical implications for bank management in integrating digital transformation with risk management frameworks and for regulators in developing digital maturity assessment requirements that emphasize substantive disclosure and risk governance. Future research should employ longer observation periods, internal digital investment data, alternative measurement approaches, and mixed-method designs to further validate and extend these findings.
The Influence of Global Uncertainty and Corporate Risk Management on Financial Performance and Company Value: The Role of ESG Moderation in Open Energy Sector Companies in Indonesia 2019 – 2024 Suwega Drestantiarto; Dewi Hanggraeni; Indra Kusumawardhana
Return : Study of Management, Economic and Bussines Vol. 5 No. 8 (2026): Return: Study of Management, Economic and Business
Publisher : PT. Publikasiku Academic Solution

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.57096/return.v5i8.493

Abstract

This study examined the influence of global uncertainty and Enterprise Risk Management (ERM) on financial performance and company value, with ESG as a moderating variable, in energy sector companies in Indonesia. The motivation for this research was the increasing level of global uncertainty driven by economic crises, the COVID-19 pandemic, geopolitical conflicts, and the acceleration of the energy transition, which have challenged the long-term sustainability of energy sector businesses. This study employed a quantitative approach using a panel data design involving 36 energy companies listed on the Indonesia Stock Exchange during the 2019–2024 period, resulting in 216 firm-year observations. Data were collected from annual reports, financial statements, the World Uncertainty Index (WUI), and Refinitiv ESG scores. ERM was measured using a content analysis approach based on the AdvERM instrument, which consists of seven risk management disclosure components. Data analysis was conducted using a fixed-effects panel regression model with robust standard errors. The results showed that global uncertainty had a negative and significant effect on financial performance, as measured by Return on Assets (ROA), but did not significantly affect company value, as measured by Tobin’s Q. Furthermore, ERM demonstrated a positive effect on financial performance and company value, although the level of statistical significance was limited. Meanwhile, ESG was not proven to moderate the relationship between global uncertainty and ERM on company performance. These findings indicate that strengthening risk management capabilities and developing more substantive ESG practices are essential for Indonesian energy companies to manage macroeconomic risks and address challenges associated with the energy transition.
The Influence of Human Resource Management (HRM) Practices on Papuan Indigenous (OAP) Employee Performance: The Mediating Roles of Affective Commitment, Readiness to Change, and Risk Culture at Regional Development Bank Yunior Pasagi; Abdul Rahman Rahim; Dewi Hanggraeni; Abdul Wahab
Glosains: Jurnal Sains Global Indonesia Vol. 7 No. 4 (2026): Glosains: Jurnal Sains Global Indonesia
Publisher : Sekolah Tinggi Agama Islam Kuningan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59784/glosains.v7i4.901

Abstract

Background: A regional development bank in Southwest Papua is undergoing organizational transformation within a culturally distinctive context, where the development and performance of Papuan Indigenous (OAP) employees are strategically important. Objective: This study examines the direct and indirect relationships between Human Resource Management (HRM) Practices and OAP Employee Performance through Affective Commitment, Readiness to Change, and Risk Culture. Methods: A quantitative cross-sectional explanatory survey was conducted among 149 purposively selected OAP employees from several work units of a regional development bank in Southwest Papua, Indonesia. Data were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS. Results: HRM Practices significantly influenced Affective Commitment (β = 0.576, p < 0.001), Readiness to Change (β = 0.608, p < 0.001), Risk Culture (β = 0.543, p < 0.001), and OAP Employee Performance (β = 0.134, p = 0.036). Affective Commitment (β = 0.218, p = 0.009) and Risk Culture (β = 0.435, p < 0.001) significantly predicted performance, while Readiness to Change was not significant (β = 0.119, p = 0.067). The model explained 63.0% of performance variance (R² = 0.630). Indirect effects were significant through Affective Commitment (β = 0.125, p = 0.012) and Risk Culture (β = 0.236, p < 0.001), but not through Readiness to Change. Conclusion: HRM Practices were associated with OAP Employee Performance directly and indirectly through Affective Commitment and Risk Culture. Readiness to Change did not serve as a significant mediator in this context.
Co-Authors ., Anasthacia Abdul Rahman Rahim Abdul Wahab Achmad Zulfikar Adinur, Reyhan Satria Agung Yoso Ahad, Sasi Waliyul Almira Dyah Karima Alssya Vadhyara Susanto Anastasia Rasia Andreas Krisvian Andreina Fara Hapsari Angelita Buulolo Anugrah Kesuma Ardila Galuh Savitri Arya Kandrasyah Bagus Nugroho Biko Kharunia Christo, Nathasya Christopher . Cipto Hartono Cipto Hartono Cita Pelangi Clarisha Fitri Dessen Setiawan Dianita Fitriani Pogram Drastya Amalia Dwi, Maharmabi Dyah Ambar Eka Rathmanty Merry Hartini Eko Nurmaryadi Enisa Dwi Prihandini Erfan Rizki Prabowo Ervina Kwintana Famadhika Aby Pratama Famy Kurnia Putri Fatwa Aulia Fauzi, Achmad Zulfikar Febriyati Kusumawardhani Ferry Fredrick Kaban Firly Armanda Gabriel Leonardo Decaprio Gandung Troy Sulistyantoro Girindra Chandra Alam Graciala Denita Harahap, Muhammad Farhan Hakim Hotmauly Media Rika Ibrahim, Syaipul Malik Indra Kusumawardhana Iqbal Mustofa Jalil Mujib Tan Ismail Jane Naomi Jane Naomi Jeffry Fauzan Jodi Surya Gustanto Jonatan Halomoan Jonatan Halomoan Jordan Ahmad Yasir Khenia Erfira Melianita Kresna Nurdianto Kurniawan, Ferdian_Ari Laras Shintya Putri Leandra Anisah Lintang Putri Enggaringtyas Lolita Akbar Lusiana Indra Mahardika Bintang Indarjanto Mahardika Dwi Jayanti Mandala, Eka Maria Christina Pasaribu Maria Manuella Anjani Mehhada Rizk Elfahmi Muhammad Faishal Hanif Muhammad Fikry Alfisyahrin Muhammad Iqbal Satria Jaya Muhammad Rifqi Abrar Muhammad Zaky Darmawan Mulyadi Mulyadi Musa Fresno Ni Luh Putu Sipta Dewi Anindita Nur Rizqi Febriani Paras Dita Purnomo, Gabriel Putri, Arisma Solicha Qonita Hasna Az-Zahro Rachim Chan Rachmi Syamsi Rachmii Syamsi Revaldo Revaldo Rhenty Puspita Rika Ayu Haryanti RM Rahardjo Satrio Unggul Roufan Hirqoni Araniri Rudi Asrudin Safira Ayu Salsabila Az Zahra Sinathrya Al Kautsar1 Sri Meaty Luminary A Napitu Steven Steven Suhailah Salma Sulung, Liyu Adhi KAsari Suripno Suripno Suwega Drestantiarto Tarikh Luthfi Simanjuntak Taufan Prasojo Wicaksono Setiadi Teddy Maulana Putra Teuku Sadri Tommy Novianto Uliyatun Nikmah Umar Rivaldy Umar Rivaldy Pulukadang Vera Anita Wakhid Junaidi Widiani, Chaerunnisa Yanur Akhmadi Yohan Tristianto Yunior Pasagi Yusuf Kresna Zaskia Ayunda Lukietta