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THE EFFECT OF EXCHANGE RATES AND INFLATION ON THE MONEY SUPPLY IN INDONESIA: AN AUTOREGRESSIVE DISTRIBUTED LAG (ARDL) APPROACH Misbachudin; Fakhri Ahmad Zainunnuri; Neng Ulpa Apipah; Syaeful Bakhri; Abdul Aziz
International Journal of Social Science, Educational, Economics, Agriculture Research and Technology (IJSET) Vol. 5 No. 7 (2026): JUNE
Publisher : RADJA PUBLIKA

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Abstract

This study aims to analyze the effects of inflation and exchange rates on the money supply in Indonesia and to identify the short-term and long-term relationships among these variables. A country’s economic stability is inextricably linked to the dynamics of inflation, exchange rates, and the money supply, which are interrelated within the economic system. This study employs a quantitative approach using secondary data obtained from Bank Indonesia and the Central Statistics Agency (BPS) for the period 2020-2024. The analysis method used is the Autoregressive Distributed Lag (ARDL) model, as it is capable of estimating both short-term and long-term relationships simultaneously within a single model. The results indicate a long-term relationship among inflation, exchange rates, and the money supply. Partially, the exchange rate has a positive and significant effect on the money supply in Indonesia. This suggests that changes in the exchange rate particularly when the rupiah depreciates can drive increased liquidity in the economy through monetary policy mechanisms and international trade activities. Meanwhile, inflation does not have a significant effect on the money supply in the short term. This indicates that changes in inflation during the study period did not directly influence money supply policy due to the inflation control policies implemented by Bank Indonesia. Thus, exchange rate stability is a critical factor that must be considered in maintaining monetary equilibrium and national economic stability. Keywords: Exchange Rate, Inflation, Money Supply, Monetary Policy, ARDL
Optimalisasi Peran Baitul Maal Wa Tamwil (BMT) dalam Pemberdayaan Umkm: Pendekatan Maqashid Syariah dan Inklusi Keuangan Neng Ulpa Apipah; Ani Indah Sari; Sri Rokhlinasari; Alvien Septian Haerisma
JURNAL EKONOMI BISNIS DAN MANAJEMEN Vol. 4 No. 3 (2026): Juli : JURNAL EKONOMI BISNIS DAN MANAJEMEN
Publisher : CV. ALIM'SPUBLISHING

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59024/jise.v4i3.1902

Abstract

This study investigates the role of Baitul Maal wa Tamwil (BMT) in empowering Micro, Small, and Medium Enterprises (MSMEs) through the integration of Maqashid Sharia principles and financial inclusion strategies. Despite the strategic importance of MSMEs in economic growth and poverty reduction, many face challenges in accessing formal financial services. BMT, with its dual function of social (maal) and commercial (tamwil) activities, offers a unique platform to bridge this gap. Using a qualitative systematic literature review guided by PRISMA, this study analyzes 30 relevant articles to examine BMT operational models, implementation of Maqashid Sharia objectives, financial inclusion practices, and their impact on MSME performance. Findings indicate that BMT effectively supports MSMEs in capital access, income generation, and business resilience, but inconsistencies in balancing social and commercial objectives limit. holistic empowerment. Integrating Maqashid Sharia principles enhances ethical and sustainable outcomes, while financial inclusion expands outreach to underserved entrepreneurs. Optimization strategies, including strengthening institutional capacity, combining financial and non-financial support, and context-specific interventions, are essential for maximizing BMT effectiveness. This study contributes a comprehensive framework linking ethical, financial, and empowerment dimensions, offering practical guidance for policymakers and BMT managers in promoting inclusive and sustainable MSME development.
Optimalisasi Peran Baitul Maal Wa Tamwil (BMT) dalam Pemberdayaan Umkm: Pendekatan Maqashid Syariah dan Inklusi Keuangan Neng Ulpa Apipah; Ani Indah Sari; Sri Rokhlinasari; Alvien Septian Haerisma
JURNAL EKONOMI BISNIS DAN MANAJEMEN Vol. 4 No. 3 (2026): Juli : JURNAL EKONOMI BISNIS DAN MANAJEMEN
Publisher : CV. ALIM'SPUBLISHING

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59024/jise.v4i3.1902

Abstract

This study investigates the role of Baitul Maal wa Tamwil (BMT) in empowering Micro, Small, and Medium Enterprises (MSMEs) through the integration of Maqashid Sharia principles and financial inclusion strategies. Despite the strategic importance of MSMEs in economic growth and poverty reduction, many face challenges in accessing formal financial services. BMT, with its dual function of social (maal) and commercial (tamwil) activities, offers a unique platform to bridge this gap. Using a qualitative systematic literature review guided by PRISMA, this study analyzes 30 relevant articles to examine BMT operational models, implementation of Maqashid Sharia objectives, financial inclusion practices, and their impact on MSME performance. Findings indicate that BMT effectively supports MSMEs in capital access, income generation, and business resilience, but inconsistencies in balancing social and commercial objectives limit. holistic empowerment. Integrating Maqashid Sharia principles enhances ethical and sustainable outcomes, while financial inclusion expands outreach to underserved entrepreneurs. Optimization strategies, including strengthening institutional capacity, combining financial and non-financial support, and context-specific interventions, are essential for maximizing BMT effectiveness. This study contributes a comprehensive framework linking ethical, financial, and empowerment dimensions, offering practical guidance for policymakers and BMT managers in promoting inclusive and sustainable MSME development.