Economic: Journal Economic and Business
Vol. 5 No. 2 (2026): ECONOMIC: Journal Economic and Business

The effect of exchange rates and interest rates on Indonesia's international trade performance during 2015–2024

Artha Putri Br Karo (Politeknik Negeri Medan)
Debora Silvia Hutagalung (Politeknik Negeri Medan)
Septri Anisa (Politeknik Negeri Medan)
Andreas Panjaitan (Politeknik Negeri Medan)



Article Info

Publish Date
30 Apr 2026

Abstract

The purpose of this study is to examine the relationship between exchange rates and interest rates on a country's foreign trade performance. Exchange rate movements influence the price competitiveness of exported and imported goods, while changes in interest rates impact capital flows and the stability of the national currency. This study applies quantitative methods using secondary data obtained from Indonesian government financial reports, international trade statistics, and monetary indicators for the period 2015 to 2024. The analysis shows that exchange rate depreciation generally encourages exports but suppresses imports. Meanwhile, interest rate increases have varying impacts, depending on market responses, particularly from investors and domestic consumers. Therefore, exchange rate stability and the implementation of appropriate interest rate policies are strategic factors in supporting the performance of the international trade sector.

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Journal Info

Abbrev

ejeb

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

ECONOMIC: Journal Economi and Business yang diterbitkan oleh Lembaga Riset Mutiara Akbar, Medan, Indonesia merupakan jurnal akses terbuka yang dapat digunakan sebagai media interaksi bagi seluruh cendikiawan di berbagai bidang Ekonomi dan Bisnis baik itu Karya Ilmiah kajian pustaka maupun ...