Modeling Multi-Output Back-Propagation DNN for Forecasting Indonesian Export-Import

Abstract

Introduction/Main Objectives: International trade through the mechanisms of exports and imports plays a significant role in the Indonesian economy, making the timely availability of export and import value data crucial. Background Problems: Export and import values are influenced by inflation and exchange rate factors. Novelty: This study identifies two categories of variables, namely output (export value and import value) and input (inflation rate and the exchange rate of the Rupiah against the US Dollar). Research Methods: the research approach utilizes a Multi-output Deep Neural Network (DNN) with a Back-propagation algorithm to model the input-output relationship. The method can provide forecasting results for two or more bivariate or multivariate output variables. Finding/Results: The modeling analysis results indicate that the optimal model network structure is DNN (3.4). This model successfully predicts output 1 (export value) and output 2 (import value) with Mean Absolute Percentage Error (MAPE) rates of 13.76% and 13.63%, respectively. Additionally, the forecasting results show predicted export and import values for November to be US$ 16,208.13 billion and US$ 15,105.33 billion, respectively. These findings offer important insights into the direction of Indonesia's international trade movement, which can serve as a basis for future economic decision-making.