Studying Indonesian Financial System, UNS Research Team Funded By LPS

UNS – Three researchers from Faculty of Economy and Business Universitas Sebelas Maret (FEB UNS) Surakarta successfully achieved the third winner on Indonesian Deposit Guaranty Institution (LPS) Research Fair 2018 that was conducted at Js Luwansa Hotel, Jakarta on Tuesday (9/25/2018). They are Aldy Fariz Achsanta, Putra Pamungkas, and Tastaftyan Risfandy whose the title of their research is “Simpanan Berelasi: Baik atau Buruk untuk Stabilitas Bank?

“This research is about relation saving. It means the saving from the party having relation based on ownership or connected due to management. It usually brings the clients to some interest conflicts. We study whether it affects positively or negatively toward Bank stability,” Aldy explained on Saturday (9/29/2018) contacted from Surakarta while he is finishing his doctoral at Universite de Limoges, France.

From the sample of 116 banks in Indonesia from 2009 until 2016, this relation saving apparently affects negatively toward bank stability. Aldy stated that the risk may be increased potentially in damaging its stability. In case of that, he recommended government to make a certain regulation about this.

“As we know that there is no such regulation in Indonesia, but only regulating the loan. It matters to monitor and limit the relation saving,” this doctor candidate said.

Aldy added that it is a need because relation saving has been already a part of world business, especially on the area where ultimate ownership exists.

“Many scholars study about this whether from the perception of self-dealing or related party transactions,” Aldy added.

On this program, LPS accepted 45 proposals from 26 universities. Of the total, 27 proposals were successfully selected for being evaluated. The best eight proposals would be funded by the LPS.

“This research is funded by the LPS with the amount of the money is Rp. 50 million. We got the third winner,” Lady stated.

This LPS Research Fair 2018 is an event to introduce research in terms of economic guaranty, resolution, and stability. It also aims to explain the function of LPS to the society and to support the development of research in Indonesia. humas.red-uns/Imr/Dty