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Analysis of the Effect of Inflation, Interest Rate and Exchange Rate on Economic Growth in Indonesia Period 2007-2020

Riska Hawang, Rahmatia, and Fatmawati

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Hawang, R., Rahmatia, and Fatmawati, 2021. Analysis of the Effect of Inflation, Interest Rate and Exchange Rate on Economic Growth in Indonesia Period 2007-2020. United International Journal for Research & Technology (UIJRT), 2(9), pp.74-79.

Abstract

This study aims to examine the effect of inflation, interest rates, and exchange rates on the rate of economic growth in Indonesia through the People’s Business Credit. The data used is secondary data obtained from BPS. The data in this study is an annual time series from 2007-2020. This study uses the simultaneous regression analysis method with the Amos program. The findings of this study indicate that inflation, interest rates, and exchange rates do not affect Indonesia’s economic growth. This study shows that the policies implemented can stabilize the rupiah exchange rate, inflation, and interest rates which in turn have an impact on the distribution of People’s Business Credit so as to increase Indonesia’s economic growth.

Keywords: Inflation, Interest Rates, Exchange Rates, People’s Business Credit, Economic Growth.

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