Hamidah, Afanin
Unknown Affiliation

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

Modeling the Farmer Exchange Rate in Indonesia Using the Vector Error Correction Model Method Farida, Yuniar; Hamidah, Afanin; Sari, Silvia Kartika; Hakim, Lutfi
MATRIK : Jurnal Manajemen, Teknik Informatika dan Rekayasa Komputer Vol. 23 No. 2 (2024)
Publisher : Universitas Bumigora

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30812/matrik.v23i2.3407

Abstract

The agricultural sector plays a crucial role in the Indonesian economy. However, the farm sector still has serious problems, including agricultural product prices, which often fall when the harvest supply is abundant. So often, the income obtained is not proportional to the price spent by farmers, which has an impact on decreasing the welfare of farmers. An indicator to observe changes in the interest of Indonesian farmers is the Farmer Exchange Rate Index (NTP). This study aims to form a model and project the welfare level of farmers in Indonesia, focusing on NTP indicators, which are caused by the influence of variables such as inflation, Gross Domestic Product (GDP), interest rates, and the rupiah exchange rate. The method used is the Vector Error Correction Model (VECM), used when there are indications that the research variables do not show stability at the initial level and there is a cointegration relationship. The results of this study show that in the long run, significant factors affecting NTP are inflation, interest rates, and the rupiah exchange rate. Meanwhile, in the short term, the variables that have an impact are GDP and the rupiah exchange rate. The resulting VECM model shows a MAPE error rate of 1.79%, indicating excellent performance, as the MAPE error rate is below 10%. The implication of this research is provides information related to NTP projection that can be used to formulate strategies to strengthen Indonesia's agricultural sector.