THE EFFECT OF BANK INDONESIA RATE AND INFLATION ON THE FINANCIAL PERFORMANCE OF PT BANK MANDIRI (PERSERO)

Abstract

The study entitled "The Effect of Bank Indonesia Rate and Inflation on the Financial Performance of PT Bank Mandiri (Persero) Tbk" aims to analyze the effect of BI Rate (X1) and inflation (X2) on financial performance as measured by annual net profit (Net Profit, Y) during the period 2014–2023, using quantitative descriptive methods and multiple linear regression. Based on the results of statistical tests with SPSS, partially (T-Test), both BI Rate (Sig. value 0.993) and inflation (Sig. value 0.204) do not have a significant effect on Net Profit, because both values are greater than 0.05. Similarly, simultaneously (F-Test), the two independent variables also do not have a significant effect on Net Profit, with a Sig. value of 0.287. The coefficient of determination (R2) of 30.0% indicates that 70.0% of the variation in Net Profit is influenced by other factors outside the BI Rate and inflation4. The conclusion of this study confirms that Bank Mandiri's financial performance is more influenced by the bank's internal factors, such as operational efficiency and risk management, which are able to maintain net profit stability despite fluctuations in macroeconomic indicators.