Abstract

Consumption is an important instrument in the economic development of a country. The high level of consumption reflects that the income of the people in the country is also high. However, the fulfillment of these consumption goods also comes from imported goods, so this condition is not very good for the domestic economy because imports can reduce the exchange rate and reduce national foreign exchange. This study aims to estimate the effect of per capita Gross Domestic Product (GDP), rupiah exchange rate against the United States dollar, inflation, and taxes on imports of Indonesian consumer goods in 2000-2021 using Ordinary Least Square (OLS) regression analysis. The results showed that per capita GDP had a positive effect on imports of consumer goods and a negative exchange rate on imports of consumer goods. Meanwhile, inflation and tax revenues were found to have no effect on the value of imports of consumer goods in Indonesia. It is hoped that the government together with the national monetary unit will be able to maintain stabilization of the rupiah exchange rate so that the inflation rate is in line with the needs of the national economy. It is hoped that public consumption can be maintained and the expected national economic growth can be achieved.

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