Analysis of Macroeconomic Factors Affecting Non-Performing Loans in Multinational Banking in Indonesia

This research intends to analyze the macroeconomic factors affecting Non-Performing Loans (NPL) of multinational banking in Indonesia using the approach of quantitative to-causality. The population consists of 68 private commercial bank companies in Indonesia which are owned by foreign parties and private parties as well as Indonesian citizens (multinational ownership). The research sample is 19 companies with the criteria of private commercial banks in Indonesia which are owned by foreign parties and private parties as well as Indonesian citizens (multinational ownership) listed on the Indonesian Stock Exchange from 2013-2021 accompanied by foreign parties as the majority shareholder. Sample screening by purposive methods. The research data were obtained through secondary data from published websites on the Indonesia Stock Exchange, Bank Indonesia, Ministry of Trade, Globalrates, Macrotrends, and Central Statistics Agency. Then analyzed using the panel data regression analysis method. The results found that international interest rates have a positive effect on NPL of multinational banking in Indonesia, but inflation and crude oil prices have a negative effect on NPL of multinational banking in Indonesia, while exchange rates and exports have no effect on NPL of multinational banking in Indonesia.