The Economics and Business Quarterly Reviews

Maulana Arief Ikhsan,

Abstract

Bank, financial inclusion, debt behavior, and business investment greatly affect the economic growth of a region
industry. The main purpose of this research is to examine the effect of bank behavior, financial inclusion, debt
behavior on investment decisions of Micro, Small and Medium Enterprises customers at Bank BPD Yogyakarta,
Indonesia. The research sample is BPD Yogyakarta customers Respondents as 200 entrepreneurs are customers
who are in debt for business investment. The analysis model uses mediation regression with PLS. The results
showed that bank behavior had a positive effect on financial inclusion. Bank behavior has a positive effect on debt
behavior. Financial inclusion has a positive effect on business investment. Debt behavior has a positive effect on
business investment. Financial inclusion, debt behavior mediates the influence of bank behavior on business
investment. The implication of this research is that a clear bank behavior and high commitment of banks are needed
in offering bank products. It takes commitment and supervision from the Bank in providing credit to customers so
that the use of funds is in accordance with investment objectives.
Keywords: Bank Behavior, Financial Inclusion, Debt Behavior, Business Investment.