Ilomata International Journal of Management P-ISSN: 2714-8971; E-ISSN: 2714-8963 Volume. 2 Issue 4 October 2021 Page No: 300-308 300 | Ilomata International Journal of Management https://www.ilomata.org/index.php/ijjm Determinant of Net Interest Margin Banking in Indonesia During The Period 2009 - 20018 Siti Mariam¹, Fika Aryani², Dhinda Siti Mustikasari 3 , Abdul Haeba Ramli 4 12 Institut Ilmu Sosial dan Manajemen STIAMI 3 Universitas Indonesia 4 Universitas Trisakti Correspondent: siti.mariam@stiami.ac.id Received : July 28, 2021 Accepted : August 25,2021 Published : October 31, 2021 Citation: Mariam, S., Aryani, F., Mustikasari, D.S., Ramli, A.H. (2021). The Impact of COVID-19: Become New Entrepreneurs with Online Business. Ilomata International Journal of Management, 2(4), 300-308. https://doi.org/10.52728/ijjm.v2i4.385 ABSTRACT: The purpose of this study is to examine the effect of Loan Growth, Unemployement, BOPO, CAR, Inflation, and Exchange Rate in relationship with Net Interest Margin. The research object used is banking data BUKU I to BUKU IV 2009-2018 published by Financial Service Authority, known as OJK. The analysis technique used is panel data regression analysis with Eviews 9.0 analysis tool. The results showed that the variables which consist of Loan Growth, and Unemployement had significant positive effect on Net Interest Margin. Other independent variables, which consist of BOPO, and Exchange Rate had significant negative effect on Net Interest Margin. While CAR and Inflation do not show significant impact to Net Interest Margin. Keywords: Loan Growth, Unemployement, BOPO, CAR, Inflation, Exchange Rate, Net Interest Margin Publisher’s Note: Ilomata International Journal stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. Copyright: © 2021 by the authors. Licensee Ilomata International Journal, Indonesia. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). INTRODUCTION Banking is one of the main bases for economic growth and financial stability in a country. The banking function as a financial institution is expected to become a driver of the economy for Indonesia. In carrying out its function as an intermediary, banking business activities, namely receiving and safeguarding funds owned by individuals and other entities, and then lending these funds to conduct economic activities. When carrying out its intermediary function, banks have a correlation with economic growth. When increasing the amount of credit affects the increase in economic growth in a country and vice versa. With the activity of channeling funds, the net interest margin, which is the ratio in banks, is so important that it needs to be considered in order to realize quality bank management (Adam et al., 2021; Mara et al., 2021). NIM is a tool that has the function of knowing banking profits and lending activities for a certain period of time. The NIM ratio is a measure in analyzing the difference in net interest income or interest margin compared to earning assets or interest profitability (Blöchlinger, 2021; Saksonova, 2014). Bank profitability provides an indication of health and stability for banking institutions (Sanderson, 2018). The increasing net interest margin ratio means that bank management is getting better and reflects that the bank is well managed. A high NIM value means that high-interest income from productive assets in the company, then high-