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Journal : International Humanities and Applied Science Journal

THE EFFECT OF WORKING CAPITAL CREDIT FINANCING OF REGIONAL GOVERNMENT BANKS ON THE VALUE OF THE SRI- KEHATI INDEX IN THE CONTEXT OF SUSTAINABLE FINANCE IN INDONESIA Ruray, Irvan Salafuddin; Pratama, Aditya
International Humanities and Applied Science Journal VOLUME 8, ISSUE 1, 2025
Publisher : Universitas Mercu Buana

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Abstract

Abstract – This study analyzes the impact of Working Capital Credit (KMK) financing by RegionalDevelopment Banks (BPD) on the SRI-Kehati Index, which reflects the sustainability performance ofindustrial sectors in Indonesia. Greenhouse gas emissions generated by industrial activities financedby KMK from BPD contribute to the climate change occurring in Indonesia. The study uses secondarydata, including documents, reports, and publications related to BPD financing in the industrial sector.The Vector Error Correction Model (VECM) method is employed to examine the long-term and short-term relationships between KMK financing in five key sectors—agriculture, mining, manufacturing,energy, and construction—and sustainability performance as measured by the SRI-Kehati Index. Theresults indicate that KMK financing by BPD contributes positively to sustainable development in theindustrial sector. The dependent variable used is the SRI-Kehati Index, which measures the social andenvironmental performance of companies, while the independent variables include the agriculture,mining, manufacturing, energy, and construction sectors. KMK financing by BPD can enhancecorporate sustainability performance by prioritizing sustainable business practices and recognizingcompanies that meet certain sustainability standards. Additionally, this financing encourages theadoption of environmentally friendly technologies and responsible business practices. Thus, KMKfinancing by BPD not only plays a role in economic growth but also contributes to climate changemitigation and environmental conservation.Keywords: Regional Development Bank, Bank Financing, Sustainability Performance, SRI-KEHATI
Co-Authors , Ridhwan Abdul Rivai Abdur Rahman As’ari Achendri M. Kurniawan Afrila, Diliza Agus Surono Agus Wibowo Agustin , Sonya Ahmad, Rudi Aisyah, Nada Aliyah, Ulfatul Alvianto, Fidelia Amalia , Syifa Qolbi Amalia Putri Maharani Amertha, Anak Agung Ngurah Putrayoga Andersan, Jonathan Andy Andy ANGGRAINI, MELISA Anggraini, Theresia Anis Chariri Aprizal, Yusuf Zaini Arifianto, Rosandi Arika Fitriani Armeliza, Diah Arsyil, Abyan Aslamah, Afidah Nur Astuti, Rima Fuji ATI SUMIATI, ATI Aussie Amalia Ayuningtyas, Gilang Azalia, Farah Cantika Baharudin, Puja Cahyani, Mya Christian Wiradendi Wolor Corry Yohana Delianggi, Rizky Destra, Edwin Dewanto, Paulus Gegana Thery Dewi Cantika, Nourma Islam Dewi Susita Dhanar Intan Surya Saputra Diana, Keni Didit Sumardiyanto Dion, Keni Dita Puruwita, Dita Dzakiyyah, Aisyah Elfrida Ratnawati Enang Narlan Soetiman AP ENDANG SUSANTINI Fadhila, Intan Fadillah, Nadya Fajar Nugroho, Rizky Fajrin, Verawati Fauzi, Aziz Fauzi, Aziz - Fidhyallah, Nadya Fadillah fira, Shafira Firmannudin, Firmannudin Fitrianingtyas, Erissa Gandi, Muhammad Rajib Goutama, Eztro Gunaidi, Farell Christian Gunawan, Libbi Azhafif Hamdi Hamdi Handayani, Sri Hapsah , Siti Hapsoro, Cahyo Aji Harahap , Afriandi Hariyanto, Nurman Hariyanto, Yensi Harya Kuncara Wiralaga Haryanto, Ines Hasim Hasim Hayati, Innisa Kumala Hendra Taufik Henri Nusantara Hidayati, Awanis husna, annisa haziah Hutabarat, Zuhri Saputra I Ketut R. Sudiarditha I Wayan Merta Ikawanty, Beauty Anggraheny Ikhsan, Julfahmi Inayati Nuraini Dwiputri Istiqomah, Nabila Nur Iswandi, Heri Jatmiko, Mahardika Rais Khalijah, Rizkika Kosasih, Robert Kuncara W, Harya Kuncara Kurniadi, Vanessa Pascalia Kusnita, Yen Leny Yuanita Lubis, Maripah Riana Lubis, Nabilah Fitri LUBIS, PAULINA Maghfirah Maghfirah Maharani, Diva Mahdalina, Mahdalina Malzara, Vidia Ratu Balqis Mardi Mardi Mardi Margareth, Sandra Resta Maudina, Anissa Maulida, Shofi Maya Retnasary Meiki Eru Putra Mufidah, Chusnanik Muhammad Yusuf Munawar Agus Riyadi Muztaza, Nordiana Mohd Nawawi, Muh Ngantung, Verra yanti Nikmah, Mery Jazimatun Ningrum, Fadhilah Atika Nirmalasari, Novita Novanti, Anissa Rizki Novita Sari Nurcahyani, Sulis Rizkyka Nurislamiah, Siti Nuruliza, Safira Nurullita, Dinni Parkhurst, Helen Pratiwi, Heni Puji Hastuti Putri, Nanda Eka Qinanty, Arum Rahim, Abd Rahmad Dian Rahmi Ramadani, Suci Ramadhani, Adithya Ramadhina, Yuqa Putri Rd. Tuty Sariwulan Riastuti, Ayu Ridhwan Ridhwan, Ridhwan Rizal Fahmi Rizal Fahmi Roihan, Muhammad Rosbandi, Rosbandi Ruray, Irvan Salafuddin Ruslim, Welly Hartono SABILLA, SARAH Safira, Nabela Salim, Susanto Santi Merlinda Santoso, Alexander Halim Saparuddin Saptono, Ari Sari Rahayu, Dian Sari, Desita Sari, Lena Sasmi, Aji Ahmadi Sekar, Ajeng Dzakira Septi Andryana Setia, Nicholas Setyawati, Ariesta Sholihati, Ira Diana Sholikhah Simamora, Yericho Lam Pedro Siti Fatimah Zahra Siti Mawaddah, Siti Siti Nurjanah Siti Zulaikah Soebrata, Linginda Suadi, Daeng Achmad Sudirman Sudirman Suhandi, Windi Nursandi Sulaiman Sulaiman Sulistiyani Suparno Suparno Suparno SUSAN FEBRIANTINA, SUSAN Sutedja, Gina Triana Syalsabila, Anis Tarafi, Lutifah Nur Tiza, Tiza Anzari Tresnawati, Valentina Ukufah, Nur Aini Aprillia Ultari, Eldisa Prayana Utami, Wanda Yulia Wijaya, Christian Windiarti, Sofi Winnugroho Wiratman, Manfaluthy Hakim, Tiara Aninditha, Aru W. Sudoyo, Joedo Prihartono Yanto, Sandi Yogi, Namira Dwi Martina Yuli Christiyono Yunieta Anny Nainggolan, Yunieta Anny Zahra, Siti Fatimah Zakaria, Adam Zakiya, Nadiya Fikriyatuz Zakly, Hanif 'Izzudin Zuffar Ikhsan Pratama Zulfia, Binta Zulfikar, Benny