PENGARUH ANGGARAN PERTAHANAN, IMPOR ALUTSISTA, EKSPOR ALUTSISTA, DAN INFLASI TERHADAP PERTUMBUHAN EKONOMI DI INDONESIA TAHUN 1980-2019

Abstract

Military and economy are two factors that can sustain the strength of a nation, where it can be seen from the nation's economic growth. Military indicators include military budget, arms imports, and arms exports. One of the economic indicators is inflation. These indicators are used in this study. The research problem is about the differences in results of research found in previous studies. The purpose of this study is to examine the effect of military indicators and economic indicators on economic growth. The study conducted in Indonesia using secondary data obtained from Stockholm International Peace Research Institute (SIPRI), World Bank, and Central Bureau of Statistics (BPS) of Republic of Indonesia. The research period is 40 years, from 1980 to 2019. The research method uses multiple linear regression. The results showed that military budget has significant effect on economic growth with positive relationship with probability value 0,01. Arms imports has significant effect on economic growth with positive relationship with probability value 0,03. Arms exports has no significant effect on economic growth with probability value 0,49. Inflation has a significant effect on economic growth with negative relationship with probability value 0,00. And simultaneously have significant effect on economic growth. In order to increase economic growth, it is necessary to has a military budget planning, planning for arms imports to be developed domestically, development of domestic arms technology to have competitive value, as well as planning the annual rate of inflation which will have an impact on increasing Indonesia's economic growth. Keywords: Arms Export, Arms Import, Economic Growth, Inflation, Military Budget