Abstract

DOES THE RUPIAH EXCHANGE, FDI AND GDP OF SINGAPORE EFFECT ON THE INDONESIAN ECONOMY THROUGH THE EXPORTS OF PETROLEUM OIL IN 2000-2020?

Highlights

  • The existence of international trade in exports and imports determines the value of a country's currency, where money has its own exchange rate in the international market

  • The reason for choosing this location is because we want to see how much impact it has on the Indonesian economy, which is influenced by the rupiah exchange rate, Foreign Direct Investment (FDI) and GDP of Singapore through oil exports in 2000-2019

  • The existence of fluctuations in the rupiah exchange rate affects the supply of oil export volume to foreign countries

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Summary

Introduction

The existence of international trade in exports and imports determines the value of a country's currency, where money has its own exchange rate in the international market. The foreign investment or FDI is expected to be able to fill the shortage of savings that can be collected from within the country, increase foreign exchange reserves, increase government revenues and develop managerial skills for the economy in the host country This situation causes the governments of developing countries in ASEAN to make every effort to attract foreign investment in obtaining capital resources from abroad for the sustainability of their economic growth. Free trade allows all countries to interact with each other, trading to improve the economy and establishing diplomatic and political relations which is good news for Indonesia as one of the participants in the world free market If it is associated with international capital flows, the labor-intensive structure of Indonesia's industry will encourage capital outflows, causing a surplus in the current account balance (Wiwin Setyari, 2017). FDI contributes by strengthening special economic zones and bonded zones to support modern industrialization

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