FEB

Kategori: faculty

  • Accounting Study Program FEB UNS Hosted FGD on International Class Development

    Accounting Study Program FEB UNS Hosted FGD on International Class Development

    Accounting Study Program, Faculty of Economics and Business (FEB), Universitas Sebelas Maret (UNS), organized a Focus Group Discussion (FGD) on International Class Development. The FGD was conducted on Wednesday, November 17, 2021, in a Hybrid format, at UNS Inn and via Zoom meeting. The event was attended by academic staff from FEB UNS, representing the Accounting, Management, and Development Economics Study Programs.

    From left: Agung Julianto, Ph.D., Dr. Djuminah, Dr. Wahyu Widarjo

    Two discussants were invited to the discussion namely Dr. Devi Sulistyo Kalanjati, SE, M.Acc, M.Sc, Ak from UNAIR, and Agung Julianto, SE., M.Si, Ph.D., Ak., CA from UNDIP. The activity was divided into two sessions, led by Taufiq Arifin, S.E., M.Sc., Ph.D., Ak., and Dr. Wahyu Widarjo, S.E., M.Si, as moderator. Both are lecturers from the Accounting Study Program.

    Dr. Djuminah, M.Si., Ak., the Vice Dean of Human Resources, Finance, and Logistics FEB UNS, delivered a speech on behalf of the Dean of FEB UNS. She stated that the FGD was an interesting occasion, both for the academic support staff and the faculty members involved in international classes.

    Taufiq Arifin, Ph.D., delivering a speech on behalf of the Head of the Accounting Study Program

    Dr. Djuminah also expressed her gratitude to the guest speakers and the organizing committee for managing and supporting the FGD. Hopefully, the event would bring abundant benefits, fostering extensive knowledge and experience-sharing in managing international classes.

    Meanwhile, Taufiq Arifin, S.E., M.Sc., Ph.D., Ak, in his welcoming remark representing the Head of the Accounting Study Program, conveyed that this agenda was part of the university’s endeavor to be a reputable world-class university. This strategic program is then mandated to the study programs to fulfill its commitment as part of UNS.

    “International classes are part of the university’s strategy to prepare competitive students at the national and international levels. This program also provides students with extensive exposure, including a curriculum that aligns with international standards, focusing on a wide range of skills such as critical thinking, problem-solving, communication, collaboration, and many more,” he said.

    Discussion session with Dr. Devi Sulistyo Kalanjati, SE., M.Acc., M.Sc., Ak

    The International Class, organized by the Accounting and Development Economics Study Program FEB UNS, provided an opportunity for students to enrich their academic experiences. Hopefully, students would take part in the double degree program, where they could study for four semesters at UNS and four semesters at Curtin University. “This is an extraordinary opportunity for the first batch of students in the international class make to the best use of it,” he emphasized.

    The FGD was expected to improve the continuous efforts made by FEB UNS, including future strategies related to the international class program.

  • Accounting Study Program Webinar on Political Connection and Accounting Research

    Accounting Study Program Webinar on Political Connection and Accounting Research

    The Bachelor in Accounting Study Program, Faculty of Economics and Business (FEB) Universitas Sebelas Maret (UNS) held a Webinar as part of the Series of International Class Opening Activities, entitled “Political Connection and Accounting Research,” on Wednesday, 10 November 2021.

    Prof. Dr. Izza Mafruhah, SE, M.Si, the Vice Dean for Academic, Research, and Student Affairs FEB UNS, in her welcoming speech, said that the topic is an excellent choice to establish a well-rounded academic mentality as a researcher, while the topic of political connection is interesting and can open up wide opportunities, especially for researchers in the accounting field.

    The webinar, which was attended by around 130 students, invited Dr. Effeizal Aswadi Abdul Wahab, a lecturer at Curtin University of Technology, Australia. “The study of political connections is not a new topic. Instead, it is an important catalyst for other research on political connections in accounting and examines the role of connections among top individuals through cross-ownership and interlocks,” he explained.

    “The reason why it is so important is because of the relationship between political connections and company performance (whether in economic, social, racial, political aspects).

    Political connections have a more profound role in developing the new economy. It can also be seen as another way of dealing with inefficiencies. Politics is part of a government or organization because the government is the actor that will initiate the capital market rules and regulations, which can affect the development of the capital market,” he stressed.

    For instance, Effiezal added, political connections can be found in several countries, including Malaysia, Mauritius, Saudi Arabia, and Indonesia. He emphasized that the political connection in Indonesia is still affected by Military Connection, one of President Soeharto’s political policies. Hence, it shows that the military still holds a major influence in the capital market and Indonesia’s economy in that matter.

    Reporter: Fauzan
    Editor: Humas FEB

  • The Vice President of the Republic of Indonesia Encourages UNS to Prepare a Young Generation With Excellent Sharia Economics and Finance Competencies

    The Vice President of the Republic of Indonesia Encourages UNS to Prepare a Young Generation With Excellent Sharia Economics and Finance Competencies

    UNS — The Vice President of the Republic of Indonesia (RI) KH Ma’ruf Amin hopes for the Universitas Sebelas Maret (UNS) Surakarta participation in accelerating the economic growth and Islamic finance in Indonesia. As one of the State Universities (PTN) in Indonesia, UNS is encouraged to prepare a young generation who excels in the field of Islamic economics and finance. This message was conveyed in a keynote speech of the 2021 Sebelas Maret International Conference on Islamic Economics (SMICIE), hosted by the Faculty of Economics and Business (FEB) UNS.

    “I hope for UNS, as one of the best universities in Indonesia, to take a role in shaping a young generation who excels in the field of Islamic economics and finance in order to accelerate the growth of Indonesia’s Islamic economy and finance,” said KH Ma’ruf Amin, Tuesday (9/11). /2021).

    The development of the Islamic economy in itself cannot be separated from several key sectors, among others, Islamic finance, halal food and beverage industry, halal cosmetics, halal medicines, Muslim-friendly travel, Muslim fashion, and Islamic-themed media and recreation. Domestically, this sector is growing significantly, considering that Indonesia has the largest Muslim market globally, both as consumers and producers. Additionally, after the Covid-19 pandemic hit the world economy, the Islamic economic sector must be optimized to be a new economic growth that supports national economic growth.

    Advanced preparation for the young generation in Islamic economics and finance is one of the supporting efforts in increasing the role of Islamic banks in Indonesia. This effort becomes a preparation of superior Human Resources (HR) with a noble character. Other development efforts involve the use of digital-based technology, development of sustainable innovation in new products and services creation, Islamic banking services expansion to remote regions, and expansion of community financial literacy.

    The Vice President of the Republic of Indonesia also expressed his appreciation to UNS academics members for organizing the 2021 SMICIE. He hopes that this conference can produce innovative formulations for the development of Islamic economics and finance.

    In his speech, he states that universities are considered to have an important role in developing Islamic economics and finance, especially Islamic banking. Islamic economics and finance are an integral part of the national economic system that has a vital role in restoring the national economy. “Therefore, universities are expected to make a contribution in the form of ideas, innovation, human resources preparation, and encouraging literacy in advancing the Indonesian Islamic economy and finance,” he explained. (Humas FEB)

  • Accounting Study Program FEB UNS Holds a Webinar Series for the International Class Opening

    Accounting Study Program FEB UNS Holds a Webinar Series for the International Class Opening

    The Bachelor in Accounting Study Program, Faculty of Economics and Business, Universitas Sebelas Maret (FEB UNS) hosted a webinar entitled “Sustainability Reporting, Integrated Reporting, ESG Reporting, and Laporan Keberlanjutan: the IFRS Foundation Initiative Aiming for Mandatory Reporting,” Monday, 25 October 2021, via Zoom Cloud Meeting and Youtube Livestreaming on FEB UNS Youtube Official Channel.

    The webinar is part of the Series of International Class Opening Activities initiated by the Accounting Study Program in 2021 and involves 13 partner universities. Dr. Elvia R. Shauki from the University of Indonesia (UI) was invited as the main speaker for the session.

    In his opening remarks, Dr. Mugi Harsono, the Vice-Dean for Planning, Partnership, Business, and Information Affairs FEB UNS, who represented the Dean of FEB UNS, Prof. Djoko Suhardjanto, conveyed that the topic of this webinar is essential and needs to be considered by the companies in Indonesia. “In Indonesia, the sustainability report is a section that must be included in companies’ annual financial report based on regulations from the Financial Services Authority (OJK),” said Dr. Mugi.

    He further said that the purposes of the Accounting Study Program International Class are to improve the quality of education at FEB UNS, establish good relations between FEB UNS and partner universities. This program also aims to enrich student learning experiences through direct interactions and participation between UNS and partner universities and improve FEB UNS’s academic reputation and Indonesia in general in the fields of business, economics, and social sciences.

    Starting her presentation, Dr. Elvia stated that sustainability reporting is important because there is a possibility that sustainability disclosure will become a mandatory report to be disclosed by the company when the students graduate. Further, she mentioned that the presentation aims to understand whether the harmonization of the sustainability report, which includes the framework, will take place soon.

    On this occasion, Dr. Elvia explained several points related to sustainability reports, such as the various terms in sustainability reporting, the meaning of sustainability reporting, reasons for disclosing sustainability reports, and the role of accountants.

    “Sustainability reporting is often known by several other names such as Corporate Social Reporting, Triple Bottom Line Reporting, ESG, Sustainability Reporting, and so on. The difference between these various names lies in the coverage and audience of the report,” explained Dr. Elvia related to the definition of sustainability reports which often have several synonyms.

    Through the interactive event, Dr. Elvia also explained the reasons for reporting sustainability as well as theories that can be used to analyze the factors that encourage companies to disclose sustainability information, such as institutional theory and positive accounting theory.

    During the event, participants were given the opportunity to deliver a direct question to Dr. Elvia or to submit questions via Zoom Chatbox. At the end of the event, there was a prize draw for participants who actively asked questions and a group photo session.

    Reporter: Aulia
    Editor: Humas FEB

  • In collaboration with PT Kliring Berjangka Indonesia, FEB UNS Holds General Lecture on Warehouse Receipt System: Instrument in Promoting Indonesian Farmers Welfare

    In collaboration with PT Kliring Berjangka Indonesia, FEB UNS Holds General Lecture on Warehouse Receipt System: Instrument in Promoting Indonesian Farmers Welfare

    Almost half of the population of Indonesia works in the agricultural sector. However, until now, the agricultural sector has not shown a significant contribution to national income. Various problems and challenges continuously arise in the field, such as funding or capital source.

    The establishment of a Warehouse Receipt System (WRS) from PT Kliring Berjangka Indonesia is expected to bring beneficial outcomes, including controlled and stable commodity prices, as well as working capital assurance.

    The breakthroughs initiated by PT Kliring Berjangka Indonesia are expected to help farmers and farmer groups as well as small and medium enterprises experiencing difficulties in getting access to capital, especially through credit loans. This statement was delivered by Prof. Djoko Suhardjanto, M.Com (Hons), Ph.D., Ak, the Dean of the Faculty of Economics and Business (FEB) Universitas Sebelas Maret (UNS), through his remarks at the General Lecture on Warehouse Receipt Systems, Instruments for Promoting Indonesian Farmers Welfare. The general lecture was organized by FEB UNS in collaboration with PT Clearing Indonesia Futures on Wednesday, 3 November 2021.

    “This general lecture aims to disseminate and to introduce students to a new insight on warehouse receipt system, which is expected to open a discourse for students discussion; hence, they can have a real contribution to economic development in Indonesia,” Prof. Djoko wishes.

    Agung Rihayanto, Director of PT Kliring Berjangka Indonesia, reveals that PT. Kliring Berjangka Indonesia’s role, as a warehouse receipt registration center, is not only to assist farmers but also to be a safe mechanism for managers to use, especially in terms of the supply chain aspect. The warehouse has the following characteristics: beneficial in maintaining quality, value, and quantity, which allow farmers to accommodate quantity shrinkage and loss according to the designated policy. Hopefully, this public lecture will be a good start for students, especially for the FEB UNS faculty member, to learn more about the warehouse receipt system.

    Meanwhile, Widiastuti, the Head of Bureau for the Development and Supervision of Warehouse Receipt System and Commodity Auction Market, Commodity Futures Trading Regulatory Agency (Bappebti), states that through Law No. 9 of 2006 concerning Warehouse Receipt System, which has been amended by Law No. 9 of 2011, Indonesia has financial and trading instruments that provide options for farmers, small and medium enterprises and other business actors to obtain funding from financial institutions with warehouse receipts as collateral.

    According to her, this strategy repositions agricultural commodities as items with economic value that deserves to be used as collateral to get financing from financial institutions without any other guarantees, such as fixed assets, land, houses, and others. Therefore, farmers can use their commodities stored in WRS warehouses as collateral.

    “This instrument development becomes the government’s commitment to empowering our farmers who are lacking in bargaining power and have limited options other than selling their crops during harvest period at low or unfeasible prices,” he said.

    It should be emphasized that the warehouse receipt system has a role more than just financing but also stabilizing the price of agricultural products, breaking the extensive supply chain for agricultural product trade, and setting necessary quality standards.

    Through this warehouse receipt system, the need for affordable, high-quality food commodities at the community level can be fulfilled while increasing profits at the farmer level at the same time.

    With the information system in the warehouse receipt system, the availability of commodity supply reserves distribution data will be accurate and valid. Based on these data, the government can take appropriate policies regarding the distribution, regional grain provision to create national food sovereignty. WRS as stock management can be the tool to maintain food stability in Indonesia. (Humas FEB)

  • Green Economy RG FEB UNS Develops Ecological and Educational Tourism for Kedung Ombo Reservoir Using 5W Strategy

    Green Economy RG FEB UNS Develops Ecological and Educational Tourism for Kedung Ombo Reservoir Using 5W Strategy

    The Green Economy Research Group (RG), Faculty of Economics and Business (FEB) Universitas Sebelas Maret (UNS) hosted a research and community service in Kedung Ombo Reservoir (WKO) Sragen, Wednesday, September 22, 2021. Chaired by Prof. Dr. Izza Mafruhah, SE, M.Si, as the Vice-Dean for Academic, Research, and Student Affairs, FEB UNS, the RG conducted education and assistance in managing the WKO tourist area for the Ngargosari Sragen village apparatus. The team developed a blend of ecology and education tourism for this region, a tourism concept that combines education and the environment.

    Prof. Izza said that WKO is one of the reservoirs in Central Java, which extended through three Regencies, namely Grobogan, Sragen, and Boyolali Regency. Currently, the Sragen WKO has very good and extraordinary potential, especially in terms of ecology, which can be developed and combined with education, but so far, it has not been developed and yet to be managed properly. “The development of a tourism area has five main aspects: what to see, what to do, what to buy, what to arrive, and what to stay. These five aspects are indicators that will help the development of the WKO tourist area, especially in the Sragen Regency,” she explains through a release received by feb.uns.ac.id.

    The ‘what to see’ aspect refers to what the visitor will see at WKO. The main potentials for WKO include the potential for vast waters, green forested areas with natural scenery, and cool air. This potential can be developed with the help of the second indicator. The ‘what to do’ aspect can be developed through fisheries establishment, especially Karamba aquaculture, culinary, fishing, and water games, while still adhering to safety aspects.

    The vast potential of the terrain can be used for fruit crops, especially Longan and crystal guava, camping ground, special interest sports, especially those with out-bond nuances, as well as the establishment of viewing posts with Instagram-able photo spots. The special tracks that have been built for walking and cycling can be equipped with various other means of transportation such as Bendi, Kereta Kelinci, and other facilities that make it easier for visitors to get around.

    In terms of ‘what to buy,’ additional culinary and souvenir outlets can be established along the track and lakesides, which will attract tourists to come and also revive the community’s economy. What to arrive refers to the efforts taken by business actors and tourism activists to host periodic events that will attract visitors, for example, kite festivals, culinary festivals, ornamental boat festivals, and others. Hence, visitors will be attracted to attend the event. As for the last aspect, what to stay, WKO can follow the current demand on a natural-nuances inn, equipped with tents, where glamping will actually attract people from various circles, especially students, to visit WKO.

    Another potential of the Ngargosari Village is the fact that the village is designated as a WKO Sragen developer and one of the internet literacy villages launched by the Sragen Regency. Internet adoption will affect tourism development, while the ease of internet access will be one of the main attractions for tourists. Meanwhile, the main weakness of WKO in Sragen is the lack of appropriate access to the location. These potentials and weaknesses certainly require a comprehensive development plan and efforts carried out by various stakeholders from the government, business actors, communities, academics, and media.

    “The government is responsible and holds the authority for the road facilities construction as well as other supporting facilities at the WKO site. Business actors are responsible for developing the attractiveness of WKO in the form of events, supporting facilities, and culinary arts. Academics members are obliged to conduct research and service that encourage the lifecycle and development of WKOs. While the media is responsible for their role as the promotional mouthpiece for the WKO area,” Prof. Izza said. The five elements are known as the Penta helix. When established thoroughly, it will provide essential points for developing WKO as an attractive tourist destination. Humas FEB UNS

  • MM FEB UNS Won Indonesia Digital Popular Brand Award 2021

    MM FEB UNS Won Indonesia Digital Popular Brand Award 2021

    The Master Program in Management (MM) Faculty of Economics and Business (FEB) Universitas Sebelas Maret (UNS) Surakarta won the Indonesia Digital Popular Brand Award (IDPBA) 2021 as a MM education institution with the best digital media management in Indonesia. In total there are 9 (nine) other MM programs from different universities in Indonesia, UNAIR, UNPAD, ITB, IPB, UNDIP, UI, UGM, USU, and UB, that were receiving the award. The award was handed online through the IDPBA ceremony on Thursday (28/10/2021).

    Retno Tanding Suryandari, S.E., M.E., Ph.D., the Head of MM FEB UNS, explained that there are three assessment criteria in IDPBA: Search Engine Based, Social Media Based, and Websites Based. The Search Engine Based criteria were assessed through brand discussion on the internet pages and the average monthly brand search on the internet. The Social Media Based was assessed through the engagement in Facebook, Instagram, and YouTube. Lastly, the Website Based criteria assessment was based on the website traffic, website access speed, and mobile user-friendliness. Ten MM programs were selected from these three criteria with early selection criteria of university reviewed in more than 10,000 search engine pages, which UNS was included in the category.

    “One of the factors that I think make UNS included in the Best 10 (is because) UNS actively uses its social media besides formal media at internet pages in introducing UNS and its programs. The utilization of social media, such as YouTube, Instagram, Twitter that become an assessment criterion for university or program traffic,” Retno Tanding Suryandari, Ph.D. explained.

    She also explained that besides the website, currently MM UNS also utilizes other social media such as YouTube, Instagram, Twitter, and Facebook to communicate with its stakeholders, prospective students, students, and information seekers. Several contents in MM social media are related to business contents, how to manage a business, and the challenges and solutions that can be taken by decision-makers for problems faced by business management and organization.

    The content shared in MM UNS social media is expected to benefit students and other information seekers, such as business managers and other parties. Hopefully, the content provided in the MM social media can be beneficial not only for the students of MM UNS but also for other stakeholders. According to Retno Tanding Suryandari, Ph.D., this award is the result of the Team’s hard works, not only the social media managers but also website managers, faculty contributions, and promotion conducted by the university for all programs in UNS. (Humas FEB)

  • FEB UNS Monitors Budget Absorption Capacity for 2021

    FEB UNS Monitors Budget Absorption Capacity for 2021

    In an attempt to improve budget absorption for the 2021 fiscal year, the Faculty of Economics and Business (FEB) Universitas Sebelas Maret (UNS) held a Budget Absorption Monitoring, Tuesday, October 19, 2021, at the Lor In Hotel, Karanganyar. The Dean of FEB UNS, Prof. Djoko Suhardjanto, M.Com., (Hons), Ph.D., Ak., in his remarks, states that the objective of the activity is to monitor and evaluate all planned activities that must be completed by the end of November 2021.

    “I hope that budget users can administer and accomplish all planned activities by the end of November 2021. This meeting was necessary because there was only a month and a half left. All budget users can explain which activities have been carried out and administratively completed or activities carried out but yet to be completed. The explanation for incomplete activities must detail the difficulty to complete the task and immediate efforts to resolve the situation.

    Separately, the Vice Dean of Human Resources, Finance, and Logistics FEB UNS, Dr. Djuminah, M.Si., Ak., emphasized that this coordination is carried out at all levels of the budget user unit. This monitoring coincides with the start of the 4th quarter of the 2021 fiscal year, or the 3rd week of this 4th quarter, to be precise.

    On the other hand, all activities must be completed by the end of November 2021, including accountability reports for all budget implementation. Hence, it is estimated that several agendas cannot be implemented due to certain situations and conditions. It is expected that through this monitoring, activity confirmation can be carried out to encourage collaboration among the FEB UNS units.

    By the end of the 2021 fiscal year, FEB absorption capacity is expected to reach almost 100% or even 100%. (Humas FEB)

  • FEB UNS Community Service Team Hosted Training for Dalang in Solo

    FEB UNS Community Service Team Hosted Training for Dalang in Solo

    Surakarta shadow puppeteers (Dalang) took part in a Costing and Financial Management Training organized by the Faculty of Economics and Business (FEB) Universitas Sebelas Maret (UNS) Community Service Team on Friday, October 22, 2021, at Padepokan Aji Tirto Wening, Boyolali. This team was led by the Dean of FEB UNS, Prof. Drs. Djoko Suhardjanto, M.Com., Hons., Ph.D., Ak., with the PDIE FEB UNS lecturers and students as members.

    The training was attended by several senior Dalang, such as Ki Tengkleng and Ki Warseno Slenk, as well as junior Dalang, including Ki Amar Pradopo, Ki Galang, and many others. The participating Dalang are trained to calculate the costs incurred from Wayang Kulit (Shadow puppets) performances and manage the funds collected from those performances.

    In his speech, Prof. Djoko Suhardjanto states that this activity is a form of FEB UNS’s service to the community.

    “The campus must assist the local community in solving their complaints and concerns. Especially during this pandemic, artists are significantly affected, especially a Dalang, who has had a hard time getting a performance request for almost 2 (two) years,” he explained.

    Further, he said that in order to survive the pandemic, not a few of the Dalang and the entire performance crew, who had been relying on these traditional performing arts for a living, had to find other professions. They are forced to do jobs that are no longer appropriate to their fields of expertise. During this nearly two-year pandemic, many Dalangs were forced to sell their private collection (property) to survive.

    This situation is acknowledged by several Dalang. Before the pandemic, they did not manage their finances properly. All income they earned from a performance was spent on consumptive and short-term daily needs. At that time, they thought that if they were running out of money, there would be another performance. Whereas long-term financial needs must be prepared as early as possible, and the future is not clear.

    Dalang is a profession that has no guaranteed salary. It is likely that if a Dalang is not invited to any performance, there is no income. The pandemic situation should be a valuable experience for managing finances in the future. The Abdimas Team member, Dr. Wahyu Widarjo, SE, M.Sc., said that the current demands for Dalang are not limited to just creating works of art. They are also required to manage their finances well and promote their artworks.

    “The purpose of this training is to assist Dalang in preparing financial plans according to Wayang Kulit performance order from individuals and agencies, or else when they get funding from sponsors or grants from the government. Meanwhile, marketing skills are needed to allow them to sell their work and not idling when waiting for performance requests,” he said.

    This activity will be followed up with marketing training for Dalang, organized by the Abdimas FEB UNS Team. (Humas FEB)

  • Management Study Program Holds Guest Lecture in Financial Management: Transformation in Banking

    Management Study Program Holds Guest Lecture in Financial Management: Transformation in Banking

    The Management Study Program, Faculty of Economics and Business (FEB) Universitas Sebelas Maret (UNS) Surakarta, held the second part of the Guest Lectures series in the 2021 Program Kompetisi Kampus Merdeka (PKKM) entitled “Financial Management: Transformation in Banking” on Tuesday (19/10/2021).

    The Guest Lecture with Prof. Franco Fiordelisi was held virtually through the Zoom Cloud Meeting and was attended by around 70 participants consisting of students and lecturers from FEB UNS.

    Before starting his material presentation on Liquidity Risk in the Banking sector, Prof. Fiordelisi expressed his hope to visit UNS directly. “I hope to be able to visit UNS in person because your university has interesting stories and facilities,” said Prof. Fiordelisi.

    As part of the Guest Lecture series on financial management, the material presented by Prof. Fiordelisi in this guest lecture aims to help students in understanding how banks are managing their sources of liquidity risk.

    The material is started with the definition of liquidity from three different views, namely the securities, markets, and financial liquidity. Liquidity viewed from the security instrument refers to the condition where a security instrument can be traded easily in the capital market.

    On the other hand, a market (stock/capital market) is considered liquid when there is a good or balanced level of demand and supply. On the other hand, financial liquidity is a condition where a financial instrument can be used to obtain funding or to pay off obligations. Hence, it can be concluded that, in general, liquidity can be defined as the number of assets that can be immediately used in transactions.

    In relation to banking institutions, Prof. Fiordelisi mentioned that banks are the only institutions dealing with tremendous liquidity pressures due to their obligation to maintain customer trust.

    According to him, banks must be able to manage liquidity well to ensure that customers can withdraw funds for their daily needs.

    Liquidity risk can occur under two types of circumstances, a result of specific events or due to systemic conditions. Specific events liquidity risk normally occur due to internal conditions of the bank or a specific event happened, for example, debtors that fail to settle periodic installments, which then disrupts the bank’s liquidity level. This condition, according to Prof. Fiordelisi, requires more attention from bank managers.

    On the other hand, liquidity risk due to systemic conditions usually occurs in other banking institutions but has a systemic impact on a country’s financial system. “Although this systemic condition does not actually involve the concerned bank, such condition could affect customer confidence in the banking sector as a whole. Therefore, managers still have to pay attention to this systemic condition in making decisions,” explained Prof. Fiordelisi.

    The topic of discussion continues to the types of calculation approaches in liquidity risk management, which consist of a stock-based approach, cash flow, and hybrid. The discussion is closed with the explanation of various regulations in the banking sector, which are globally regulated by the Basel Committee on Banking Supervision within the Basel III provision.

    Reporter: Aulia
    Editor: Humas FEB