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All Journal El-Iqtishady International Journal for Advanced Research
Nathania Christy Sembiring
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Journal : International Journal for Advanced Research

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The Influence of Inflation on Economic Growth in Indonesia During the 2016-2020 Period Nathania Christy Sembiring; Sinaga, Hottarida; Sirait, Respa Mellia
International Journal of Advanced Research Vol. 1 No. 6: April 2025
Publisher : Outline Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61730/eykxt458

Abstract

This study aims to analyze the impact of inflation on Indonesia's economic growth during the 2016-2020 period. Inflation is a key macroeconomic indicator with complex effects on economic activity, both positive and negative. A quantitative method with a descriptive-analytical approach was employed, using secondary data from Statistics Indonesia and Bank Indonesia. A simple linear regression analysis revealed that inflation has a significant effect on economic growth, with a significance level of 0.039. The findings indicate that rising inflation, particularly during the Covid-19 pandemic, negatively impacted economic growth due to increased prices of essential goods, reduced purchasing power, and higher unemployment. However, inflation levels during the observed period remained within a normal range, offering opportunities to drive further economic growth. This study provides valuable insights for policymakers in managing inflation to support economic stability and sustainable growth.
Co-Authors Hottarida Sinaga Ian Josepan Saragih Sinaga, Hottarida Sirait, Respa Mellia