The Indonesian banking sector has transformed significantly from 2013 to 2024, driven by strategic oversight, regulatory measures, and technological advancements. This study explores this evolution by analyzing the impact of key financial metrics - capital adequacy ratio (CAR), net interest margin (NIM), loan-to-deposit ratio (LDR), CASA ratio, Cost to income ratio (CIR), non performing loans (NPL), provinsi coverage ratio (PCR), and return on assets (ROA)-alongside macroeconomic variables like market return (JKSE), GDP growth rate, exchange rate (IDR/USD), BI Interest rate, and inflation (CPI).
The research examines a representative sample of 12 major Indonesian commercial banks selected for their substantial influence on the national economy.