scholarly journals Indonesian Banking Efficiency: Transmission to the Financial Stability Confronting ASEAN Economic Community

Author(s):  
Shochrul Rohmatul Ajija ◽  
Mohammad Zeqi Yasin ◽  
Reno Albra

Banks are a particular type of institution within the financial system that have influence on financial stability. Their readiness will determine the government’s policy, notably in an economic era of integration. In the case of South East Asia, there is the ASEAN Economic Community (AEC) which facilitates economic integration to strengthen allthe member countries. This study aims to measure bank efficiency (conventional and shariah) in Indonesia, and also establish the transmission scheme based on the estimated result through financial stability issues confronting the AEC. Data Envelopment Analysis (DEA) is used to estimate banking efficiency statically and dynamically (Malmquist Index). The result showed that technical efficiency of conventional banks is statically better than shariah banks. Meanwhile, dynamically, considering technological index, both types of banks have good results. The optimizing effort by each bank in order to increase their input utilization can be maintained through intensification of the financial program and making it more comprehensive. Subsequently, this effort hopefully can increase the number of financial participants. Eventually, increasing the number of participants will strengthen the financial stability of Indonesia.

2018 ◽  
Vol 6 (2) ◽  
pp. 131
Author(s):  
Chajar Matari Fath Mala ◽  
Ahmad Rodoni ◽  
Bahrul Yaman

ASEAN Economic Community (AEC) of banking industry requires both Islamic and conventional banking to improve their efficiency because the competition in banking market industry will be more intense. Therefore, this study aims to identify the type of hyphotesis of industrial organization which exists in Islamic and conventional banks in order to investigate their readiness for AEC. The research sampling consists of 10 Islamic banks and 10 conventional banks from January 2009 to December 2016. To measure x-efficiency and scale efficiency, this research uses Data Envelopment Analysis (DEA). Meanwhile, the concentration is measured by Lerner index. The hypothesis is tested by using panel regression. The result shows SCP (Structure-Conduct-Performance) hypothesis is closely applied to Islamic and conventional banks because market concentration significantly influences profitability. RMP (Relative Market Power) hypothesis is also closely applied to Islamic and conventional banking, this indicates Indonesian banking has market power in determining prices and this condition makes the profit higher. RES (Relative Efficiency Structure) and SES (Scale Efficiency Structure) hypothesis do not exist in both conventional and Islamic banks because x-efficiency and scale efficiency do not affect profitability, concentration, and  market share simultaneously. Market power and efficiency researches are commonly conducted in conventional banking, however there are only a few research in Islamic banking area. The novelty of this study is the comparison between conventional and Islamic banking in the term of market structure and efficiency.


KEBERLANJUTAN ◽  
2018 ◽  
Vol 3 (2) ◽  
pp. 897
Author(s):  
ROMENAH ROMENAH

AbstractThe National Education System has grown so rapidly over time. A variety of efforts have been made to build every prosperous, dignified Indonesian human being, so that the quality of Indonesian thinking is progressing. The ASEAN Economic Community which has been launched since 2015 has resulted in free competition, both in trade, employment, and there is free competition for educators in ASEAN countries. Besides that, Indonesian education is faced with challenges and developments in the times, where the culture between ASEAN countries has no limits, this is the challenge faced when implementing the Asean Economic Comunity (ASEAN Economic Community) MEA. Indonesia as a country in the ASEAN region must prepare domestic educators to have professionalism and character so that they can compete with the AEC. Educators must be aware of the essence of the existence of their profession, continue to struggle to make changes in order to realize professionalism with noble character. Efforts made in preparing professional educators to face the challenges of the AEC must touch the most fundamental aspects of changing their competencies, namely the mindset. A student must be more advanced and innovative in developing his learning so that he can change the mindset of students to do agent of change. Through this mindset educators will become professional and characterized so that they can compete and compete in the MEA era. Keywords: MEA, Changes in Mindset, Professional Educators


2017 ◽  
Vol 3 (1) ◽  
pp. 36-52
Author(s):  
Mukhoer Abdus Syukur

Indonesia dengan jumlah penduduk yang terbanyak dikawasan ASEAN harusnya itu menjadi modal besar untuk meningkatkan produktifitas menjelang era MEA 2015. Sebagai salah satu dari tiga pilar utama ASEAN Economic Community 2015, ASEAN Economic Community yang dibentuk dengan misi menjadikan perekonomian di ASEAN menjadi lebih baik serta mampu bersaing dengan Negara-negara yang perekonomiannya lebih maju dibandingkan dengan kondisi Negara ASEAN saat ini. Dalam memberdayakan sumber daya manusia yang ada, khalifah umar bin khattab melakukan berbagai macam cara untuk memberdayakannya, yaitu: Tazkiyah dan Taklim, Pelatihan dan Meraih Keterampilan, Makanan, Kesehatan, dan Kepedulian Sosial. Dengan melakukan langkah-langkah yang telah dilakukan umar bin khattab dalam memberdayakan sumber daya insani, penulis yakin indonesia bisa berjaya para era ASEAN Economic Community (AEC) 2015 nanti, dan bisa bersaing dengan negara-negara maju.


Author(s):  
Kornkarun Cheewatrakoolpong ◽  
Chayodom Sabhasri ◽  
Nath Bunditwattanawong

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