LPPI: The Role Of Women In Management Has A Positive Impact On The Indonesian Banking Industry

Illustration. (Photo: Doc. Antara)

JAKARTA - Research by the Indonesian Banking Development Institute (LPPI) found that the role of women in the top management had a positive impact on the performance of the Indonesian banking industry.

"The results from the study show that the presence of women in top management has a significant impact on bank performance in Indonesia," said LPPI Director Retno W. Wijayanti during a seminar entitled The Role of Women Leadership in Digital Era in Jakarta, quoted from Antara, Tuesday, April 23.

In general, LPPI research shows the influence of women's presence in top management on bank performance in Indonesia which is measured through Return On Equity (ROE), Return On Asset (ROA), Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), and changes in stock prices.

Research uses bank annual report data for the period 2020-2022.

In more detail, research found that the increasing presence of women in top management had an impact on ROE's value which was also getting bigger. The existence of women in peak management also has a significant impact on increasing stock prices.

In addition, the presence of women in top management increased in average number during the 2020-2021 period.

Looking at the results of the research, it can be said that women have an important role in the top management position in the banking industry in Indonesia.

Therefore, LPPI believes that the increase in the number of women in the top management position is also increasingly essential in the growth of the business sector in Indonesia.

Furthermore, LPPI stated that demands for women to be more adaptive and resilient in making adjustments to business conditions and managing human capital in the digital era are certainly getting bigger.

This makes the digital leadership an issue that should not be denied by professionals and current decision makers, including female leaders.

LPPI as the Center for Leadership and Ethic, which was inaugurated by Bank Indonesia and the Ministry of Defense, is here to contribute more to producing tough women who can provide colors and positive contributions in the financial sector and other sectors.

Since 2023, LPPI has rebranded from the 'Indonesian Banking Development Institute', to LPPI' with the tagline Your Strategic Partner. This rebranding is also a form of LPPI's commitment to accommodate the expansion of market share.