Aida Nahar

This study aims to analyze the influence of environmental awareness, information technology (IT) use, and access to credit as moderators on the sustainability of Indonesia’s micro, small, and medium enterprises (MSMEs). Data were obtained through a survey of 1,374 MSMEs. Sampling was carried out using purposive sampling techniques, targeting MSMEs that had been established for more than 3 years and had received loans from financial institutions. The analysis used the ordinary least square (OLS) regression method to evaluate the relationship between the independent variables and MSME sustainability. The results show that environmental awareness and IT use significantly positively affect MSME sustainability. Credit access was also found to have a significant and positive effect. However, the interaction between credit access, environmental awareness, and IT use resulted in a small but significantly negative effect. This suggests that an excessive increase in credit access might reduce the positive impact of environmental awareness and IT use on MSME sustainability. Overall, this study confirms the importance of environmental awareness and information technology in improving MSME sustainability and highlights the need for proper management of credit access.

Acknowledgment
Appreciation is given to the Directorate General of Higher Education, Research and Technology, Ministry of Education, Culture, Research and Technology, which has provided a fundamental research grant with contract number 108/E5/PG.02.00.PL/2024. Acknowledgments are also expressed to higher education service institutions (LLDIKTI) Region 6 and the Institute of Research and Community Services (LPPM) Unisnu Jepara Indonesia, which has supported this research.

Type of the article: Research Article

Abstract
Digital transformation in the banking sector increasingly determines the direction of financial intermediation, including infrastructure financing, which requires long-term commitment. This study analyzes the influence of digitalization, digital security, and banking product innovation on infrastructure financing. This study uses banking data from the Indonesia Stock Exchange. The data were sourced from published quarterly bank financial reports. The study uses 1,980 observations from the 2014–2024 period. The data are analyzed using panel data regression with a fixed-effects model. The results show that banking product innovation consistently has a significant positive impact on infrastructure financing. Innovation enables the development of new financing instruments, increases intermediation flexibility, and expands access to long-term funding sources – conversely, digitalization in banking yields contradictory findings. In the initial model, digitization had a positive effect on intermediation efficiency. However, the advanced model showed a significant negative impact, indicating a trade-off: short-term digital transaction efficiency can reduce banks' orientation towards long-term infrastructure project financing.

Acknowledgments
The greatest appreciation is conveyed to the Directorate General of Higher Education, Research, and Technology, Ministry of Education, Culture, Research, and Technology, which has provided funding support for this research through a principal research grant with contract number 108/E5/PG.02.00.PL/2024. Thanks are also expressed to the Higher Education Service Institute (LLDIKTI) Region 6 and the Institute for Research and Community Service (LPPM) Unisnu Jepara, Indonesia, for their continuous support and facilitation during the research process.