The Effects of Macroeconomic Structure and Banking Financial Service toward Banking Operations and Performance of Small and Medium Enterprise Debtors in Bank Rakyat Indonesia – East Java
Dr. Muhammad Armoyu, Drs., MM.

Abstract
This article discusses about the effects of macroeconomic structure and banking financial service toward banking operations and performance of small and medium enterprise debtors in East Java’s Bank Rakyat Indonesia. In order to do so, the problems of the study can be specifically broken down into: (1) whether the macroeconomic structure of East Java significantly affects the banking operations of BRI in East Java? (2) whether the macroeconomic structure of East Java significantly affects the performance of small and medium enterprise debtors in the banking system of East Java’s BRI? (3) whether the banking financial service significantly affects the banking operations of BRI in East Java? (4) whether the banking financial service significantly affects the performance of small and medium enterprise debtors in the banking system of East Java’s BRI? (5) whether the banking operations of BRI in East Java significantly affects the performance of small and medium enterprise debtors in the banking system of East Java’s BRI? In response to the problems mentioned before, the study is aimed to: (1) test and analyze the effects of macro economy toward the banking operations of East Java’s BRI. (2) test and analyze the effects of macro economy toward the performance of small and medium enterprise debtors in East Java’s BRI. (3) test and analyze the effects of banking financial service toward the banking operations of BRI in East Java. (4) test and analyze the effects of banking financial structure toward the performance of small and medium enterprise debtors in the banking system of East Java’s BRI. (5) test and analyze the effects of banking operations toward the performance of small and medium enterprise debtors in the banking system of East Java’s BRI. In line with its aims, the significance of the current research is comprised of the following: (1) academic benefit (theoretical), it is expected that the research could provide theoretical contribution on banking management, particularly regarding the loan management system and to find empirical evidences to support the notion that the loan management system needs to be implemented in banks and financial establishment before and after they distribute the loans to the debtors. (2) practical benefit for Bank Rakyat Indonesia in East Java, the existence of the new loan management system is expected to be able to help suppress the rate of bad loan exposure done by the small and medium enterprise debtors. In the mean time, the analysis perspective of the research is decided on macro economy. The research was conducted to the Small and Medium Enterprises (SME) in East Java’s Bank Rakyat Indonesia. In addition, the research designs a new loan management system for small and medium enterprise debtors in East Java’s BRI. And for that purpose, the current research is categorized into the disciplinary research and subject-matter research types. Furthermore, the result of the research shows that: (1) macroeconomic structure (X1) affects in an insignificant and positive manner towards the banking operations (Y2) of Bank Rakyat Indonesia in East Java. From the result of the test analysis, it can be described that the macroeconomic structure does not directly affect the banking operations. The more stable and better the state of the macroeconomic structure, the easier it is for the managerial team of East Java’s BRI to manage their banking daily operations. In a way, the result of the study does not support the theories proposed by Keynes which state that the macroeconomic structure directly affects the banking daily operations. (2) macroeconomic structure (X1) significantly and positively affects the performance of small and medium enterprise debtors in East Java’s BRI (Y2). The test analysis result mentioned before shows that the macroeconomic structure has a significant direct effect towards the performance of small and medium enterprise debtors in East Java’s BRI.The path coefficient is marked positive (0.197), and it indicates that the better state of macroeconomic structure in East Java, the more it gives positive effect towards the business condition of the small and medium debtors in East Java’s BRI. Part of the findings of the research is against the theory declared by Schuler and Jackson (1997:325) which emphasizes that a large number of small and medium enterprises will cause a decrease in the unemployment rate. The finding further supports the result of a research conducted by Gillmant, Max, and Michal Kejak (2009) which concluded that the relationship between inflation and business value is negative, in other words, if the inflation rate increases, then there will be a drop in the business value of small and medium enterprises. (3) the financial structure (X2) significantly and positively affects the banking operations (Y1) of Bank Rakyat Indonesia in East Java. The result means that the better state of effectiveness and efficacy of banking financial structure’s planning and realization, the more positive effects that the banking operations will receive. This result supports a research conducted by Adams (2009) which concludes that the effect of loan provided and banking operations reflects a positive relation. It means that if there is an increase in efficiency of banking financial service, then there will be an increase in the banking operations as well. This does not support a research by Marwat et. al. (2009) which was conducted to the corporations’ executive financial management of nine major industries in Europe, it further declares that the financial structure is the main component of banking operations’ efficiency which is required to maximize the return. (4) banking financial structure (X2) significantly and positively affects the performance of small and medium enterprise debtors (Z1) in East Java’s Bank Rakyat Indonesia. The result of test analysis suggests that banking financial structure has a significant direct effect to the performance of small and medium enterprise debtors in East Java’s BRI. In other words, the better management of banking financial structure, the higher benefit it will give to the business development of small and medium debtors in East Java’s BRI. This concludes that if the economy is in a declining position, it will trigger the tradeoff between the demand for loan and the need to save money. (5) banking operations (Y1) significantly and positively affects the performance of small and medium enterprise debtors in Bank Rakyat Indonesia (Y2).

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