Abstract:
According to Otoritas Jasa Keuangan, a government body who regulates banking
and other financial institutions in Indonesia, despite the increasing of net profit
made by the commercial banks in Indonesia, the profits made by BUKU 1 banks,
the total profit made has decreased year by year from 2014 until 2017. The objective
of this study was to find out the effect between macroeconomic factors (BI Rates,
Inflation and Exchange Rate) and the profitability shown by ROA of Commercial
Banks based on Common Equity 1 (Bank Umum Kelompok Usaha 1 / BUKU 1) or
small commercial banks in Indonesia which has the common equity not more than
Rp 1,000,000,000,000,00 (1 Trillion Rupiah) for the period 2014-2017. The study
done using a multiple regression design which involved determining the
significance level of BI Rate, Inflation and Exchange Rate to the ROA levels. The
study was done by collecting data from the 10 commercial banks BUKU 1 in
Indonesia. The type of data collected was secondary data from their annual financial
reports for the period 2014-2017 and the macroeconomic rates (BI Rates, Inflation
and Exchange Rate) from Bank Indonesia. The result of the study indicates that BI
Rates, Inflation and Exchange Rate have a significant influence to the ROA of
BUKU 1 banks for the period 2014-2017.
