Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia

Research Article

The Impact Of Banking Productive Financing And Mineral Industry Hillirisation Policy On Sumatra's Economic Growth

Download171 downloads
  • @INPROCEEDINGS{10.4108/eai.10-8-2022.2320807,
        author={Febriyanto  Febriyanto and Ardiansyah  Japlani and Novita  Ardiyanti},
        title={The Impact Of Banking Productive Financing And Mineral Industry Hillirisation Policy On Sumatra's Economic Growth},
        proceedings={Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={ICBAE},
        year={2022},
        month={8},
        keywords={sumatra downstream strategies in the coal and mineral industries productive finance},
        doi={10.4108/eai.10-8-2022.2320807}
    }
    
  • Febriyanto Febriyanto
    Ardiansyah Japlani
    Novita Ardiyanti
    Year: 2022
    The Impact Of Banking Productive Financing And Mineral Industry Hillirisation Policy On Sumatra's Economic Growth
    ICBAE
    EAI
    DOI: 10.4108/eai.10-8-2022.2320807
Febriyanto Febriyanto1,*, Ardiansyah Japlani1, Novita Ardiyanti1
  • 1: Universitas Muhammadiyah Metro
*Contact email: febriyanto@gmail.com

Abstract

One of the Indonesian islands, Sumatra Island has a wealth of natural resources, including mining. Their utilization will necessitate capital investments, particularly from bank production finance. The goal of this study is to ascertain how Sumatra Island’s economic growth is influenced by banking policy, production financing, and downstream coal and mining businesses. As independent variables, working capital and investment financing were utilised. Meanwhile, a dummy variable is used to evaluate the influence of downstream policy. GDRP was used as the dependent variable, and the independent and dummy variables were associated using panel data regression of the Random Effects Model (REM) of the five provinces of Sumatra. The findings indicate that working capital finance is the sole kind of production financing that has a substantial impact on Sumatra Island’s economic growth. Additionally, downstream policy toward the coal and mining industries has been demonstrated to have a beneficial impact. And have a big impact on Sumatra’s economic development. The results of this study are anticipated to be helpful in assessing how downstream policies on the mining and coal industries and banking production financing have an impact on Sumatra Island’s economic growth.