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MODELING DEMOCRACY INDEX IN INDONESIA WITH MULTIVARIATE ADAPTIVE REGRESSION SPLINE APPROACH Saifudin, Toha; Suliyanto, Suliyanto; Nugraha, Galuh Cahya; Valida, Hanny; Nahar, Muhammad Hafidzuddin; Fortunata, Regina
BAREKENG: Jurnal Ilmu Matematika dan Terapan Vol 19 No 4 (2025): BAREKENG: Journal of Mathematics and Its Application
Publisher : PATTIMURA UNIVERSITY

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30598/barekengvol19iss4pp2347-2358

Abstract

Democracy is a system of government where citizens participate in political decision-making through freely elected representatives. To measure the quality of democracy in Indonesia, the Indonesian Democracy Index (IDI) is used as a composite indicator reflecting various aspects of political freedoms, civil liberties, and governance. The IDI score declined from 6.71 in 2022 to 6.53 in 2023, the lowest in 14 years, indicating disruption in Indonesia’s democracy. Therefore, it is necessary to identify the root causes of the disruption in Indonesia’s democracy through several indicators. This study analyzes the relationship between predictor variables, including socio-economic and development indicators, and IDI using the Multivariate Adaptive Regression Spline (MARS) approach. This study uses the MARS method by considering six predictor variables, namely the Human Development Index (HDI), Gender Empowerment Index (GEI), Information and Communication Technology Development Index (ICT-DI), Press Freedom Index (PFI), Poverty Depth Index (PDI), and High School Completion Rate (HSCR). The data used is secondary data from 34 Indonesian provinces in 2023 obtained from the Statistics Indonesia-BPS. The results showed that the best model was obtained with a combination of BF = 12, MI = 3, and MO = 1 resulting in a GCV value of 11.27 and R2 of 80%. MARS model interpretation identifies the significant influence of social and economic indicators on IDI and is able to explain 80% of data variability. The significance test shows that all predictor variables significantly affect the IDI, with the highest level of importance on the ICT-DI variable. Therefore, improving ICT-DI in each province needs to be a major concern as a strategic step to improve the democracy index in Indonesia and support the achievement of Sustainable Development Goal 16 on peace, justice, and strong institutions.
ANALYSIS OF GLOBAL ECONOMIC UNCERTAINTY IMPACT ON INDONESIA’S FINANCIAL AND TRADE VOLATILITY USING VECTOR ERROR CORRECTION MODEL WITH EXOGENOUS VARIABLES Amelia, Dita; Suliyanto, Suliyanto; Nugraha, Galuh Cahya; Suyono, Billy Christandy
BAREKENG: Jurnal Ilmu Matematika dan Terapan Vol 19 No 4 (2025): BAREKENG: Journal of Mathematics and Its Application
Publisher : PATTIMURA UNIVERSITY

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30598/barekengvol19iss4pp2963-2980

Abstract

Increasing global economic uncertainty due to the influence of geopolitical dynamics and monetary policy adjustments from major countries has significantly impacted financial and trade stability in Indonesia. This research examines the relationship between global economic uncertainty and the volatility of Indonesia's financial and trade indicators using the Vector Error Correction Model with Exogenous Variables (VECM-X) approach. The model incorporates external factors such as the US Dollar Index (DXY), Volatility Index (VIX), and Trade Policy Uncertainty (TPU), using monthly data from January 2019 to December 2024. The results of the analysis show that each variable has different volatility with patterns that tend to fluctuate, and there is a cointegration relationship between the variables of the Rupiah exchange rate (USD/IDR), Jakarta Composite Index (JCI), interest rates, export, and imports. The causality test results show that exports, JCI, and imports affect interest rates without a reverse relationship, while there is a one-way relationship between exports and imports and JCI and the exchange rate. In addition, imports and JCI have a two-way relationship that affects each other. Impulse Response Function (IRF) results indicate dynamic short-term interactions among endogenous variables, which gradually stabilize over the medium to long term. In addition, the variance decomposition results show that most of the variability of each variable is explained by itself in the short term, with contributions from other variables increasing over time. This research contributes to Sustainable Development Goals (SDGs) point 8: Decent Work and Economic Growth, by providing insight to strengthen Indonesia's macroeconomic resilience. Integrating exogenous global indicators into the VECM-X model offers a more comprehensive understanding of how global shocks affect domestic stability. However, this study is limited to a macro-level analysis using secondary data and does not account for microeconomic or sectoral variations.