BI Rate as Moderator: Internal Bank Factors and Profitability in Indonesian Banks
##plugins.themes.EpsilonTheme.article.main##
Alfius Sonandi*
Anggraeni Anggraeni
The banking sector drives Indonesia's economic stability, but profitability depends on internal management and external conditions, especially monetary policy shifts. During 2019–2023, Indonesia's BI Rate fluctuated dramatically. This study examines profitability drivers in publicly listed Indonesian banks under these changing conditions. Using Return on Assets (ROA) as the performance measure, it analyzes how Net Interest Margin (NIM), Operational Expense Ratio (BOPO), Non-Performing Loans (NPL), Loan to Deposit Ratio (LDR), and Loan to Asset Ratio (LAR) affect profitability. Panel data from seven banks were analyzed using multiple linear regression models, with one incorporating the BI Rate as a moderating variable. Results show NIM and LDR significantly boost ROA, while BOPO significantly reduces it, emphasizing the importance of interest income efficiency and cost control. NPL and LAR show no significant effect, indicating effective risk and asset management. The BI Rate's moderating effect on the NIM–ROA relationship is statistically insignificant, suggesting monetary policy changes don't substantially alter this relationship. These findings guide banks in optimizing income and costs while showing policymakers the limited role of monetary policy in moderating bank-level performance.
Abdat, F. A., Maryani, R., Ginting, J. A., Lestari, H. S., & Margaretha, F. (2024). Analisis Faktor Pertumbuhan Kredit Bank Komersil Di Indonesia. Jurnal Ekonomi, 29(2), 336–362.
Alam, A., Setyowati, E., Wiguna, A. C., & Nizam, R. S. (2022). Analysis of the Influence of BOPO, NIM and Inflation on the Profitability of Bank BRI Syariah in 2013-2020. Talaa : Journal of Islamic Finance, 2(1), 33–56. https://doi.org/10.54045/talaa.v2i1.505
Andhikatama, M., & Daulay, M. (2020). Factors Affecting Profitability with The Interest Rate as Moderating Variables in Bank Sumut. International Journal of Public Budgeting, Accounting and Finance, 3(1), 33–40.
Anto, R., Pangestusti, I. R. D., & Purwandari, E. N. (2021). Determinants of Bank Efficiency in ASEAN5: Size as a Control Variable. Universal Journal of Accounting and Finance, 9(4), 542–547. https://doi.org/10.13189/ujaf.2021.090402
Buchory, H. A., & Kusmaryadi, J. (2023). The Effect of Banking Intermediation, Secondary Reserve, Operational Efficiency, and Credit Risk on Banking Profitability (Study at Regional Development Banks in Indonesia Period 2019 – 2022). Global Conference on Business and Social Sciences Proceeding, 15(1), 58–58. https://doi.org/10.35609/gcbssproceeding.2023.1(58)
Carli, F., Lloyd-Braga, T., & Modesto, L. (2024). Imperfect competition in the banking sector and economic instability. Journal of Mathematical Economics, 112, 102968. https://doi.org/10.1016/j.jmateco.2024.102968
Darmawan, M. W., Sutisna, E., & Suhara, E. (2023). The Influence of Capital Adequacy Ratio (Car), Loan to Deposit Ratio (Ldr) and Operational Costs of Operational Income (Bopo) On Profitability at Pt. Bank Negara Indonesia (Persero) Tbk. International Journal of Social Science and Human Research, 06(06). https://doi.org/10.47191/ijsshr/v6-i6-82
Felle, A. R., & Santioso, L. (2024). The Effect Of Credit Risk And Bank-Specific Factors On Financial Performance Of Banks Listed In Indonesia Stock Exchange (IDX). International Journal of Application on Economics and Business, 2(2), 3392–3403. https://doi.org/10.24912/ijaeb.v2i2.3392-3403
Hartanto, D., & Syarif, A. D. (2022). Determinants of Commercial Bank Performance with Guarantee Interest as Moderating Variables in Banks Listed on IDX 2016 – 2020. Journal of Social Science, 3(4), 882–897. https://doi.org/10.46799/jss.v3i4.397
Hasbi, H., Djaniar, U., Putri, P. A. N., Irdawati, I., & Anantadjaya, S. P. (2024). Efektivitas Net Interest Margin dan Loan to Deposit Ratio Terhadap Profitabilitas Perbankan. Briliant: Jurnal Riset Dan Konseptual, 9(1), 82. https://doi.org/10.28926/briliant.v9i1.1627
Hasyim, F., Pratiwi, N., Asmaradhan, N. S., & Kurniyadi, K. (2023). The Effect Of Exchange Rates, Inflation And BI Rates On Profitability In Islamic Commercial Banks During The 2016-2022 Period. Asy Syar’iyyah: Jurnal Ilmu Syari’ah Dan Perbankan, 8(2), 162–184. https://doi.org/10.32923/asy.v8i2.3040
Hidayat, A., Liliana, Gustriani, Shodrokova, X., & Hakim, M. N. (2024). Covid-19 Pandemic; Impact On Net Interest Margin Of Indonesian Banking Industry. Sriwijaya International Journal Of Dynamic Economics And Business, 23–44. https://doi.org/10.29259/sijdeb.v8i1.23-44
Idowu, H. A. O., & Asaolu, T. O. (2017). Intermediation Efficiency and Profitability Performance: Quantitative Evidence from Nigerian Banking Sector. Research on Humanities and Social Sciences, 7(19).
Indrayani, I., Murhaban, M., Nurhasanah, N., Zulfikar, Z., Balqis, F., & Irpandi, W. (2022). The Effect Of Bank Risk Ratio And Earning Asset Quality On Profitability In Banking Companies Listed On The Indonesia Stock Exchange. International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS), 2(6), 1204–1214. https://doi.org/10.54443/ijebas.v2i6.508
Karim, R., Roshid, M. M., Shamme, F. B., & Hasan, M. M. (2023). Non-performing Loans and Bank Profitability. International Journal of Finance & Banking Studies (2147-4486), 11(4), 95–102. https://doi.org/10.20525/ijfbs.v11i4.2314
Komarudin, M. N. (2018). Pengaruh Kualitas Aktiva Produktif Terhadap Profitabilitas Bank (Studi Kasus Pada Bank Yang List di Bursa Efek Indonesia). Indonesian Journal of Strategic Management, 1(2). https://doi.org/10.25134/ijsm.v1i2.1386
Lestari, H. S., Chintia, H., & Akbar, I. C. (2021). Determinants of Net Interest Margin on Conventional Banking: Evidence in Indonesia Stock Exchange. Jurnal Keuangan Dan Perbankan, 25(1). https://doi.org/10.26905/jkdp.v25i1.5102
Lohven, W. T., & Adamu, A. (2023). Effect Of Loan-To-Asset Ratio On Non-Performing Loans In Deposit Money Banks In Nigeria. African Journal of Research and Management Sciences, 3(1). https://doi.org/10.62244/ajorms.v3i1.10
Mandala, V., Oktariyana, M. D., & Tanan, E. H. P. (2023). Pengaruh NPL dan BOPO Terhadap Return On Assets pada bank yang terdaftar di Bursa Efek Indonesia Tahun 2018-2022. Jurnal Inovasi Akuntansi (JIA), 1(2), 162–172. https://doi.org/10.36733/jia.v1i2.7692
Manurung, A. H., Hutahayan, B., Deniswara, K., & Kartika, T. R. (2020). Determinantof Net Interest Margin in Indonesia Bank Moderated by Risk. International Journal of Advanced Science and Technology, 29(5), 11317–11328.
Mubarok, F., & Fatimah, E. (2022). Economic Pressure on the Interest Margin of Banks in Indonesia. Jurnal Penelitian Ekonomi Dan Bisnis, 7(1), 11–20. https://doi.org/10.33633/jpeb.v7i1.4366
Mulyati, M., & Widhiastuti, S. (2024). The Role of Interest Rate in Moderating The Effect of Financial Risk On Financial Performance in Indonesia Banks List on The BEI. Fokus Bisnis Media Pengkajian Manajemen Dan Akuntansi, 23(1), 157–176. https://doi.org/10.32639/fokbis.v23i1.943
Olofin, A. J., Muritala, T. A., Maitala, F., Abubakar, H. L., & Ajalie, S. N. (2024). The Impact Of Liquidity Risk On Profitability Of Listed Deposit Money Banks In Nigeria. International Journal of Professional Business Review, 9(6), e4777. https://doi.org/10.26668/businessreview/2024.v9i6.4777
Prasetyowatie, Y. W., & Hariadi, S. (2022). Determinants Of Non-Performing Loans In Indonesia. Media Trend, 17(2), 317–328. https://doi.org/10.21107/mediatrend.v17i2.17097
Prawira, R., & Wiryono, S. K. (2020). Determinants of non-performing loans in state-owned banks. Jurnal Akuntansi & Auditing Indonesia, 24(2), 159–166. https://doi.org/10.20885/jaai.vol24.iss2.art9
Puspitasari, E., Sudiyatno, B., Hartoto, W. E., & Widati, L. W. (2021). Net interest margin and return on assets: A Case Study in Indonesia. The Journal of Asian Finance, Economics and Business, 8(4), 727–734. https://doi.org/10.13106/jafeb.2021.vol8.no4.0727
Puspitasari, K., & Muflih, M. (2024). The Effect Of Solvency And Liquidity On The Profitability Of Indonesian And Saudi Arabian Islamic Commercial Banks: An Empirical Analysis Based On Stakeholder Theory. Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan, Dan Akuntansi, 16(2), 54–75. https://doi.org/10.35313/ekspansi.v16i2.6435
Rochmah, N., & Purnamasari, P. E. (2023). The Influence of Bank Health and Interest Rates on Bank Profitability and Moderated By Economic Growth. Ekonomis: Journal of Economics and Business Published by Lembaga Penelitian Dan Pengabdian Kepada Masyarakat, 7(2). https://doi.org/10.33087/ekonomis.v7i2.1125
Scannella, E. (2010). Bank in the Theory of Financial Intermediation (La Banca Nella Teoria Dell’intermediazione Finanziaria). Il Risparmio Review, 3, 103–143.
Sewanyina, M., Nyambane, D., Manyange, M., & Ongesa, T. (2025). Managing non-performing loans in the banking sector: Determinants, impacts, and innovative solutions: A systematic literature review. F1000Research, 14, 486. https://doi.org/10.12688/f1000research.162694.1
Sianturi, C., & Rahadian, D. (2020). Analysis of The Effect of Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Net Interest Margin (NIM), Operating Expenses to Operating Income (BOPO), and Loan to Deposit Ratio (LDR) on Profitab. International Journal of Scientific and Research Publications (IJSRP), 10(7), 758–768. https://doi.org/10.29322/IJSRP.10.07.2020.p10384
Siwi, J. A., Rumate, V. A., & Niode, A. O. (2019). Analisis pengaruh tingkat suku bunga terhadap permintaan kredit pada Bank Umum di Indonesia tahun 2011-2017. Jurnal Berkala Ilmiah Efisiensi, 19(01).
Sunaryo, D. (2020). The Effect Of Capital Adequacy Ratio (CAR), Net Interest Margin (NIM), Non-Performing Loan (NPL), and Loan To Deposit Ratio (LDR) Against Return On Asset (ROA) In General Banks In Southeast Asia 2012-2018. Ilomata International Journal of Management, 1(4), 149–158. https://doi.org/10.52728/ijjm.v1i4.110
Tarigan, L. Y. P., & Tandeas, T. (2022). The Impact Of Liquidity Risk And Credit Risk On Profitability With Net Interest Margin As An Intervening Variable. Jurnal Ekonomi, 11(2), 1385–1396.
Tazriah, A., & Pratiwi, A. (2023). Analysis Of Banking Financial Ratios As A Measurement Of Financial Performance In PT. Mandiri Bank, Tbk. Invoice : Jurnal Ilmu Akuntansi, 5(2), 202–213. https://doi.org/10.26618/inv.v5i2.12304
Wardani, V. K. (2022). The Role Of Bank Indonesia In Stabilizing Indonesia’s Economy Through Inflation Control: Peran Bank Indonesia Dalam Menstabilkan Perekonomian Indonesia Melalui Pengendalian Inflasi. International Journal of Economics, Business and Innovation Research, 1(1), 190–202. https://doi.org/10.63922/ijebir.v1i01.54
Wasita, M. W. M., Artini, L. G. S., & Dana, I. M. (2022). The Effect of Bank Indonesia 7-Day Reverse Repo Rate on Profitability and Banking Capital in Indonesia. European Journal of Business and Management Research, 7(2), 90–95. https://doi.org/10.24018/ejbmr.2022.7.2.1338
Widodo, H. K., Yulianingsih, S., & Astutik, D. (2022). Pengaruh Inflasi dan Suku Bunga (BI Rate) terhadap Profitabilitas (ROA) Perbankan di BEI Tahun 2021-2022. Prosiding Seminar Nasional Manajemen Dan Ekonomi, 1(1), 73–83. https://doi.org/10.59024/semnas.v1i1.344
Widyakto, A., Suhardjo, Y., NSS, R. R. L. P., & Ardiansari, A. (2021). Analysis of the impact of NIM, LDR and NPL on bank profitability with variable mediating firm size (empirical study on public banks listed on IDX in 2015-2019). Management Analysis Journal, 10(3), 257–263.
Wijaya, A. (2025). The Effect Of Liquidity Ratio And Operational Efficiency On Profitability With Credit Risk As An Intervening Variable. IJEBD (International Journal of Entrepreneurship and Business Development), 8(1), 160–168. https://doi.org/10.29138/ijebd.v8i1.3217
