International Journal Management and Economic (IJME)
Vol. 4 No. 1 (2025): January: International Journal Management and Economic

ANALYSIS OF FACTORS AFFECTING ECONOMIC GROWTH IN INDONESIA FOR THE PERIOD 2013-2023

Sutiman Sutiman (Fakultas Ekonomi dan Bisnis, Universitas Pamulang)
Dinda Thalia (Fakultas Ekonomi dan Bisnis, Universitas Pamulang)
Rachmawaty Rachmawaty (Fakultas Ekonomi dan Bisnis, Universitas Pamulang)



Article Info

Publish Date
05 Jan 2025

Abstract

This study aims to analyze the impact of exchange rates and inflation on Indonesia's economic growth from 2013 to 2023. Using a quantitative method, the research examines secondary data obtained from Bank Indonesia and the Central Statistics Agency (BPS). The dependent variable is economic growth, while the independent variables are exchange rates and inflation. Data analysis was conducted using classical assumption tests, multiple linear regression, and hypothesis testing through t-tests and F-tests. The findings reveal that exchange rates significantly affect economic growth, with a positive regression coefficient. This indicates that higher exchange rates contribute positively to economic growth by enhancing export competitiveness and influencing domestic economic activities. Conversely, inflation does not significantly impact economic growth, suggesting limited effects of inflation during the analyzed period. Simultaneously, exchange rates and inflation explain 83.5% of the variance in economic growth, demonstrating their combined influence. The study concludes that exchange rates are a crucial determinant of economic growth, while inflation requires further investigation for a comprehensive understanding. Policymakers should focus on maintaining stable exchange rates and controlling inflation to ensure sustainable economic development

Copyrights © 2025






Journal Info

Abbrev

IJME

Publisher

Subject

Economics, Econometrics & Finance

Description

International Journal Management and Economic (IJME) is published three times a year, in January, Mey and September by Asosiasi Dosen Muda Indonesia. IJME aims to: Promote the latest research results on Management and/or Entrepreneurship and also Economic. Only publish the results of Subjects ...