Silviana Pebruary

Macroeconomic policy (fiscal and monetary) dynamics are interesting to analyze, especially considering corporate performance. This paper aims to determine the effect of macroeconomic policy on the company’s profit rate. Effectiveness of tax revenue (ETAX), realization of tax revenue (RTAX), Bank of Indonesian rate (BIRT), investment growth (INVG), realization of investments (RINV), infrastructure fund allocation rate (INFR), and realization of infrastructure funds (RINF) are macroeconomic policy variables. This study uses a sample of 256 companies listed on the Indonesia Stock Exchange (IDX) in 2005–2019. This paper employs such methods as GMM, using Wald-test and Sargan’s test. GMM estimator result shows that the instrument of infrastructure fund realization policy (RINF), investment growth (INVG), and investment realization (RINV) affect the company’s profit rate (PROF). Therefore, companies need to pay attention to the government development plans, investment growth, and investment realization, which can improve company performance. The result, government’s development for the 2005–2009 and 2015–2019 periods shows a significant difference in companies’ ability to generate profits.

Acknowledgments
We would like to thank the Department of Management, Faculty of Economics and Business, Universitas Islam Nahdlatul Ulama Jepara (Unisnu), and the Institute of Research and Community Services (LPPM) Unisnu Jepara Indonesia, which has supported this study.

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.

Climate change has become a major focus of discussion around the world. The impact of climate change has been felt in various sectors, including banking. This study aims to analyze the effect of climate change and political connections on bank financing and financial stability in the Indonesian banking sector. The study used a sample of banks listed on the Indonesia Stock Exchange. The data used in the study were 2,379 observations, taken from 2010 to 2023. Hypothesis testing was performed using the fixed effects regression model (FEM) with robust standard error. The results show that climate change has a significant negative impact on bank financing and indicate that banks should consider the risks associated with climate change when making financing decisions. In addition, political connections have a negative effect on bank financing, implying that banks tend to reduce financing to politically connected firms, possibly due to concerns about poorer risk management. On the other hand, product diversification showed no significant effect in either model. These findings highlight the importance of considering environmental and political factors in banks’ financing strategies to enhance financial stability amid the challenges posed by climate change and political dynamics. This study provides new insights for regulators and practitioners in formulating policies.

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.

Type of the article: Research Article

Abstract
Fraud remains a serious challenge for organizations because it can damage integrity, financial stability, and public trust. One of the main difficulties in overcoming fraud is understanding the factors that influence the occurrence of such actions, both from the individual and institutional side. This study aims to analyze the influence of factors that trigger fraud, both directly and through mediation and moderation mechanisms with a focus on legal ambiguity, rationalization, opportunity, and capability. The study was conducted on 333 managers of microfinance institutions in Central Java, Indonesia. Data were analyzed using SEM-PLS to test the direct and indirect relationships between variables. The results showed that legal ambiguity, rationalization, and work pressure had an effect on fraud. Rationalization mediation significantly strengthened the relationship between legal ambiguity and fraud, while mediation through opportunity and work pressure did not show a significant effect. Besides, moderation of capability on the relationship between rationalization and fraud was also significant, indicating that individuals with high capabilities tend to strengthen rationalization in committing fraud. Conversely, moderation of capability on work pressure and opportunity did not show significant results. These findings provide theoretical contributions to the development of risk management and organizational behavior literature, and offer practical insights for managers and policy makers to reduce fraud risks through improving regulatory structures, enforcing strict rules, and strengthening ethical values within organizations.

Acknowledgment
Thanks are expressed to the Directorate General of Higher Education, Research and Technology, Ministry of Education, Culture, Research and Technology for supporting this research. Thanks also go to the Institute for Research and Community Service (LPPM) of Unisnu Jepara Indonesia.

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.