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Journal : JEJAK

Monetary Policy, Foreign Interest Rate impact on Indonesian Bank Credit Dawood, Taufiq Carnegie
JEJAK: Jurnal Ekonomi dan Kebijakan Vol 11, No 2 (2018): September 2018
Publisher : Universitas Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/jejak.v11i2.16056

Abstract

This study adds to the economic knowledge by presenting proof based on data for Indonesia, on the consequence to credit provided by domestic banks, due to changes of monetary policy and foreign rates of interest. The subject matter is important for Indonesia because about 88 percent of its overall financing to the private sector in Indonesia are provided by domestic banks through credit channels. Consequently fluctuations of bank credit have significant impact on Indonesia’s financial system’s stability. Applying the Structural VAR method, the current study found that credit channeled by domestic banks in Indonesia are influenced by both rates of interest from abroad and the policy stance of Bank Indonesia. In addition it is found that foreign rates of interest effects bank credit negatively, but turns positive after 12 months. While a monetary contractionary monetary stance by Bank Indonesia decreases the quantity of credit provided by banks. These results underscores the limitation of monetary policy in managing bank credit growth. This results also underlines the need of Bank Indonesia to take into account the impact of foreign interest rates in conducting macro-prudential policies in overseeing credit growth to promote financial stability in Indonesia.
Asymmetrical Exchange Rates Effect on Indonesia's Trade Balance in Tourism Maulana, Akbar; Dawood, Taufiq Carnegie; Zulham, Teuku
JEJAK: Jurnal Ekonomi dan Kebijakan Vol 14, No 1 (2021): March 2021
Publisher : Universitas Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/jejak.v14i1.27234

Abstract

The main objective of this research is to analyze the effect of depreciation and real exchange rate appreciation on Indonesia's tourism trade balance bilaterally against Australia, China, Japan, Malaysia, and Singapore. Such analysis on bilateral relations have never been studied for developing markets countries, namely Indonesia. This study uses a linear ARDL approach and a nonlinear ARDL approach with the dependent variable on the tourism trade balance and the real exchange rate as independent variables. Income, foreign direct investment (FDI), and natural disasters as control variables. The empirical results show that Chinese and Japanese tourists respond positively to the depreciation in the real currency rate of exchange, thereby increasing Indonesia's tourism trade balance. Nonlinear ARDL shows that the relation concerning the real rate of exchange plus the balance of trade is non-symmetrical with respect to China and Japan, while Australia, Malaysia, and Singapore are symmetrical. These results suggest that the government should formulate policies to increase tourist visits from China and Japan. Further empirical results also found a J-curve pattern in Indonesia-China and Indonesia-Japan.
Co-Authors Abd Jamal, Abd Abd Karim, Mohd Rahimie bin Abd. Jamal Abd. Jamal Ade Eka Afriska Aliasuddin Aliasuddin Amir, Fakhrurrazi Amri Amri Amri Azhar, Thifal Bunsit, Thanawit Cacak Rinunate Chenny Seftarita Cut Zakia Rizki Darma Satria Darmawati, Cut Darwanis Darwanis Darwanis Eddy Gunawan, Eddy Eko Wahyu Andika Emi Anjalia Faisal Firdaus, Adhityas Fitriyani Fitriyani Fredinan Yulianda Halim, Hendra Hizir Hizir ICHWAN ICHWAN Irsan Hardi Iskandarsyah Jamal, Abd. Kadri, Mirzatul Kamal Fachrurrozi Kesuma, T. Meldi Labibah, Syarifah Lada, Suddin Lubis, Fahdi Saidi Lubis, Sanny F. M. Shabri Abd. Majid M. Shabri Abd. Majid M. Shabri Abdul Majid Machtra, Catona Madiyoh, Abdulhakim Majid, Muhammad Shabri Abdul Marwan Marwan Maulana, Akbar Miksalmina Mirna Indriani Muhammad Abrar Muhammad Abrar Muhammad Adam Muhammad Fadhil Muhammad Haris Riyaldi Muhammad Haris Riyaldi, Muhammad Haris Muhammad Ilhamsyah Siregar Muharman Lubis Mukhlis Mukhlis Murkhana Muzaiyana, Zahara Nabilah Nabilah Nazamuddin, B. S. Nazamuddin, B.S Ni Made Purnami Nisva, Raisa Ullya Nizam, Ahmad Noor Azuddin Yakob Nur Phazillah Helda Nurlina, Eka Okta Rabiana Risma Pratama, Chris Candra Januar Prayoga, Akbar Eka Queen Shinta Dewi Rauzatul Jannah Reca Rossa Arianty Ridwan Nurdin Riha Dedi Priantana Rika Nurlela Rustam Effendi Said Munzir Sakir, A Salsabila Hajian Sari, Meutia Dwi Novita Sartiyah Sartiyah, Sartiyah Satria, Wisnu Silvia, Vivi Siregar, M. Ridha Sofyan Syahnur Srinita, Srinita Suriani Suriani Syarifah Labibah T. Zulham Talbani Farlian Tedy Di Oria Salam Teguh Rochmat Maulidi Thahira, Zia Umuri, Khairil Verazulianti Verazulianti yola Mairina Sari Zikra, Naswatun Zikran, Ghrina Zulkifli Zulkifli