PUBLIC SAVINGS AT PT. BANK NTT (PERSERO) MAIN BRANCH KUPANG AND THE FACTORS AFFECTING THEM

Salomon Leki; M.E Perseveranda; Adrianus Ketmoen; Agnes Susanti Indrawati; Angelina Wulandari Daok

doi:10.35760/eb.2025.v30i3.20

Authors

Salomon Leki Widya Mandira Catholic University Kupang Author
M.E Perseveranda Widya Mandira Catholic University Kupang Author
Adrianus Ketmoen Widya Mandira Catholic University Kupang Author
Agnes Susanti Indrawati Widya Mandira Catholic University Kupang Author
Angelina Wulandari Daok Widya Mandira Catholic University Kupang Author

DOI:

https://doi.org/10.35760/eb.2025.v30i3.20

Keywords:

Interest Rate, Inflation, UMR, Community Savings

Abstract

The formulation of the problem in this study is (1) Whether the interest rate, inflation rate, and Regional Minimum Wage have a partial effect on the community's savings at PT. Bank NTT (Persero) Kupang Main Branch Unit?; (2) How do interest rates, inflation and regional minimum wages affect the level of public savings at PT. Bank NTT (Persero) Kupang Main Branch Unit? The purpose of this study is to analyze the influence of interest rates, inflation rates, and regional minimum wages on the amount of savings, both partially and simultaneously. The analysis technique used is quantitative analysis using a multiple linear regression model. In this study, the smallest square regression approach (Ordinary Least Square) was also used. The results of this analysis show that simultaneously: interest rates, inflation rates, and regional minimum wages have a significant effect on savings. Meanwhile, partially, interest rates have a significant positive effect on savings, while inflation and the regional minimum wage have a negative but significant effect. The value of the determination coefficient was 0.115 which indicates that 15.5% of the variation in savings can be explained by all three variables, while the remaining 84.5% is influenced by other factors outside the model. The researcher suggested that Bank NTT needs to strengthen the innovation of savings products and digital financial services in order to be able to increase public fund collection.

Downloads

Download data is not yet available.

References

Ali, M., Apriliana, T., & Fathonah, A. N. (2023). Effect of money supply and Bank Indonesia rate on consumer price index in Indonesia 2018-2022. Journal of Economics, Business & Entrepreneurship, 17(2), 488–497. doi.org:10.55208/jebe.v17i2.471.

Asnawi, A., & Fitria, H. (2024). The effect of money supply, interest rate and inflation on economic growth in Indonesia. Indonesian Journal of Economics, 2(1), 1–10. doi.org:10.29103/ekonomika.v7i1.1129.

Aydin, A. & Çiğdem, G. (2024). Testing the Fisher hypothesis in Turkiye: Evidence from Rals cointegration analysis. Izmir Democracy University Social Sciences Journal (IDUSoS), 7(2), 112–142.

Badrawani, W. (2024). An interpretable machine learning approach in predicting inflation using payments system data: A case study of Indonesia. Papers 2506.10369, 1–36. Retrieve from: arXiv.org.

Biswas, G. K., & Ahamed, F. (2023). Financial inclusion and monetary policy: A study on the relationship between financial inclusion and effectiveness of monetary policy in developing countries. PhD. Candidate, Department fo Economics, Southern Illinois University-Carbondale. Retrieve form: http://arxiv.org/abs/2308.12542

Fisher, I. (1930). The theory of interest: As determined by impatience to spend income and opportunity to invest it. New York: MacMillan Company.

Gocer, I., & Ongan, S. (2020). The relationship between inflation and interest rates in the UK: The nonlinear ARDL approach. Journal of Central Banking Theory and Practice, 9(3), 77–86. https://doi.org/10.2478/jcbtp-2020-0037

Luís, A. L., Teixeira, N., & Braz, R. (2023). Portuguese households' savings in times of pandemic: A way to better resist the escalating inflation? International Research Journal of Economics and Management Studies, 2(1), 283–290.

Mankiw, N. G., Taylor, M. P., & Ashwin, A. (2019). Business economics. Boston: Cengage Learning.

Marty, A. L. (1961). Gurley and shaw on money in a theory of Finance. Journal of Political Economy, 69(1), 56–62. doi.org:10.1086/258414

Meissner, T., Gassmann, X., Faure, C., & Schleich, J. (2023). Individual characteristics associated with risk and time preferences: A multi country representative survey. In Journal of Risk and Uncertainty, 66(1). doi.org:10.1007/s11166-022-09383-y

Putra, D. A., Juliana, Firmansyah, & Marlina, R., (2023). The effect of interest rate, inflation rate and rupiah exchange rate on investment results in sharia life insurance companies in Indonesia. Islamic Economic, Accounting, and Management Journal (Tsarwatica, 5(1), 41–57.

Putri, D., Valeriani, D., & Yunita, A. (2022). The effect of inflation, interest rates, exchange rates, and real GDP on financial deepening in Indonesia: Evidence from error correction model approach. Journal of Development Economics, 19(2), 233–242. doi.org:10.29259/jep.v19i2.14505.

Ramadhan, M. R., Ermawati, W. J., & Fariyanti, A. (2023). The influence of Indonesia's macroeconomic factors: Inflation and interest rate on large-cap cryptocurrency herding behavior. Journal of Accounting and Investment, 24(2), 569–586. doi.org:10.18196/jai.v24i2.18146.

Ramly, F., D. Rumerung, & Payapo, R. W. (2023). Effect of Foreign Direct Investment (FDI) on economic growth and labor absorption in Maluku. Enrichment: Journal of Management, 13(1), 340–348. doi.org:10.35335/enrichment.v13i1.1239.

Riyadi, S., Nurdin, N., & Aulia, A. D. (2022). Analysis of risk and return of investment in cryptocureency instruments in Indonesia in 2019-2021. Journal of Management and Organizational Review (Manor), 4(2), 155–167.

Rumerung, D., Effendy, J., & Ferdinandus, S. F. (2023). Analysis of factors affecting savings in Indonesia from 1990 to 2020. Daengku: Journal of Humanities and Social Sciences Innovation, 3(5), 729–737. doi.org/10.35877/454ri.daengku2094.

Sánchez Serrano, A. (2024). Banks in an environment of higher interest rates. Latin American Journal of Central Banking, xxxx, 100158. doi.org:10.1016/j.latcb.2024.100158.

Sartien K., M., Sanam, Y., & Renoat, R. E. (2021). The effect of deposit interest rates and availability of banking services on interests in savings (Study at the Bank of Nusa Tenggara Timur Main Branch Office of Kupang). Proceedings of the International Conference on Applied Science and Technology on Social Science (ICAST-SS 2020), 544, 132–139. doi.org:10.2991/assehr.k.210424.026.

Sudirman, S., & Fitrianti, F. (2022). The effect of inflation and interest rates on the profit sharing rate of mudharabah deposits in sharia commercial banks in Indonesia. Al-Mashrafiyah: Journal of Islamic Economics, Finance, and Banking, 6(2), 37–50. doi.org:10.24252/al-mashrafiyah.v6i2.31464.