Analyzing the Factors Causing Indonesia's Fiscal Deficit

Jurdil
Bambang Agoes Hermanto
Dien Ajeng Fauziah

Jurnal Multidisiplin Madani (MUDIMA)
Vol. 4 No. 9 (2024): September 2024

The objective of this study is to examine the various factors that have influenced the budget deficit in Indonesia over the period between 2000 and 2023. The factors examined include imports, exports, inflation, and the exchange rate. The methodology employed is multiple regression analysis with an ordinary least squares (OLS) approach, based on time series data published by the Ministry of Finance, the Central Bureau of Statistics, and the World Bank. The findings indicate that exports, imports, and exchange rates exert a significant influence on the budget deficit, whereas inflation demonstrates no significant impact. By elucidating these factors, the government can undertake strategic measures to augment state revenue and manage expenditure in a more efficacious manner, which in turn can facilitate sustainable economic growth