Combining regional growth model and integration of financial institution model, this paper evaluates whether intermediary development influences growth in Indonesia. Recent research has proved that not only banks development influence economic growth positively but also its exogenous components.However, there are several different assumptions during adopt this model in Indonesia. Especially regional approach is differing than national approach in growth model. The point is the existence of intermediary integration across region whit causes the economic agent move freely within a nation.The data show that integration of financial intermediation was not always associated with economic growth. Only four of twenty six provinces which proved strong influence of financial intermediation on economic growth. Labor condition and average annual wages are not exogenous variables which explain growth due to financial intermediation in Indonesia. At least during 1987-1998.

Paper ini bertujuan untuk menganalisa tingkat suku bunga kredit Bank Perkreditan Rakyat (BPR), sesuatu yang menjadi perdebatan di lingkungan institusi di Indonesia, sebagai dampak proses liberalisasi keuangan yang memungkinkan bank untuk menetapkan suku bunga yang tinggi. Paper ini mempergunakan model mikro untuk mengelaborasi peran aktif bank, khususnya yang berskala kecil seperti BPR.Setelah tingkat suku bunga kredit diperoleh, dilakukan beberapa simulasi untuk melihat formasi tingkat suku bunga pinjaman optimal, dan cara terbaik menurunkan resiko dan besaran suku bunga tersebut. Data yang dipergunakan memiliki dua level agregasi yang berbeda, pertama, menempatkan bank BPR sebagai unit observasi dan kedua, penggabungan bank menurut region sebagai unit sampelnya. Hasil dari paper ini diharapkan dapat memperkaya pemahaman atas keuangan mikro di Indonesia dan kaitannya yang erat dengan manajemen moneter.JEL: D81, E43, E58, G21Keyword: lending rate, financial liberalization, micro model, risk, BPR

The factors that influence a program’s success determine targets as part of planning, resources, and communication. In contrast, previous research results suggest factors that influence farmers’ interest in agricultural insurance are income, risk results, program support, and regional characteristics. This research aims to evaluate the implementation of Farming Insurance (AUTP/Asuransi Usaha Tani Padi) by identifying the conformity and gap between the implementation of farming insurance from 2015 to 2017. Furthermore, based on regression using the panel fixed effect model, the result shows that the variable number of civil servants instructors and risk on the previous year negatively affects the realization of farming insurance distribution on the eight equation models. This shows that civil servants instructors’ performance is not yet optimal in supporting the implementation of farming insurance. The decline in civil servant’s instructor performance is due to the difficulty in measuring the accountability of the civil servant instructor’s performance. Therefore, accountability of the instructor’s performance in supporting the program’s implementation can be more measurable. As a recommendation, the government needs to start reviewing the Public-Private Partnership system to provide farming insurance to be implemented more broadly.

The Indonesian palm oil industry has an important role in the national economy as a foreign exchange earner, a provider of employment and a source of household income. In developing the palm oil industry, Indonesia only emphasizes on CPO exports so that the added value obtained is still low. Domestic consumption of CPO is only about 30 percent, while the other 70 percent is exported. This study aims to analyze the impact of the government's downstream policy on CPO consumption in the downstream industry. The analysis technique used in this study is Fixed Effect Model on panel data from the downstream CPO industries with the 2000-2015 research year period. The results showed that the downstream policy and the export duty did not have a significant effect on CPO consumption. The number of companies and international CPO prices have a positive and significant effect, while the price gap and production output in the previous year have a significant negative effect on CPO consumption. Industries that have a significant influence in absorbing domestic CPO are the palm cooking oil industry, the pet food ration industry, the basic oleochemical and biodiesel industry, and the edible oil and vegetable fats industry. Meanwhile, the coconut cooking oil industry and the soap and cleaning industry did not have a significant effect. From the results of this study, it is suggested that downstream policies should be accompanied by accelerated in infrastructure development and adequate energy availability so as not to hamper production and smooth logistics.

After the 2008 global financial crisis triggered by the subprime mortgage in the United States, financial services authorities in various countries increasingly realized that surveillance and regulation of financial institutions were not enough only through micro-prudential approach, which intended to maintain individual financial institutions, but required macro-prudential surveillance and regulation in maintaining financial system stability. The macroprudential policy aims to limit systemic risks occurring in financial distress conditions that lead to broader economic losses. One of the macro-prudential policy instruments applied by the financial services authorities in various countries, including Indonesia, is the Loan-to-Value ratio limitation. This countercyclical policy is intended to control the rate of growth in property credit. This paper discusses the effects of limiting the Loan-to-Value (LTV) ratio by Bank Indonesia on the growth of bank property credit in Indonesia. Using ordinary least squares, the results of this study conclude that adopting a tightening LTV policy when economic growth high has a significant influence in holding back the pace of five months of property credit growth after the policy was issued. While the LTV policy’s implementation, which is loosening when economic growth is slowing down, has no significant effect in driving the pace of property credit growth.