Rupiah Exchange Rate Research Articles

DOES CORRUPTION HAS A POSITIVE IMPACT ON ECONOMIC GROWTH?

The problem of corruption is a common problem and continues to this day in Indonesia. The level of corruption that does not improve causes losses and inefficiency in the economy. The high level of corruption has been an obstacle to economic progress and growth in Indonesia so far. This research aims to find out more about the impact of worsening corruption on foreign investment, the Rupiah exchange rate against the dollar, and economic growth. This research uses secondary data obtained from the central statistics agency for 16 years. Research data processing uses PLS. Based on the research results, it was found that the level of corruption affects the level of foreign investment and the Rupiah exchange rate against the Dollar but not economic growth. This research also found that foreign investment can mediate the relationship between the level of corruption and economic growth. In this research, it was found that the higher the level of corruption, the more foreign capital will enter. This is because countries with high levels of corruption have poor administrative systems so that by using bribes the investment process can run more easily. The greater the foreign capital that enters, the greater the capital in economic activities so that economic growth will increase. This is certainly not a good thing the Indonesian government needs to improve the quality of its bureaucracy so that corrupt practices do not get worse

Analysis of the Fluctuations of ASEAN Currencies Against the US Dollar

At the beginning of 2024, from January to April, there was a downward trend in the rupiah exchange rate against the United States dollar. This downward trend also occurred in various countries in ASEAN. This trend is of course influenced by several factors, both internal and external. This research aims to analyze the internal and external factors that cause this tendency. The data in this research is secondary data and comes from the International Monetary Fund (IMF) at CEIC. This research uses descriptive analytical-qualitative methods. The results of this research show that interest rates, inflation, and net exports in the short term do not have a significant effect on exchange rate movements. However, this depreciation factor trend is more influenced by global geopolitical problems and the size of a country's economy. Geopolitical issues and the size of the economy affect a country's balance of payments (BOP) and foreign exchange reserves, which in turn influence exchange rate movements. Researchers hope that this research can provide new information for the academic community and become material for consideration, suggestions, and input for government authorities who have internal decision-making authority regarding exchange rates.

Analysis of Factors Affecting Food and Beverage Company Finances in the Period 2019-2023

Several food and beverage sub-sector companies experienced a decline in profits caused by factors such as the decline in the rupiah exchange rate, declining consumer purchasing power and increasing business spending that exceeded revenue growth. Laboratory analysis is an important indication used in the process of evaluating a company's financial performance. This study aims to analyze the financial performance of food and beverage manufacturing companies listed on the Indonesia Stock Exchange between 2019 and 2023. The research method uses quantitative research. The purposive sampling method was used to collect a total of eighty samples from a particular organization for the purpose of conducting a survey. A technique known as multiple linear regression was used in the data analysis process. Based on the results of the study, there was no significant relationship between corporate social capital and financial performance. However, leverage has an impact on the company's overall financial output. Management should consider the amount of leverage when trying to improve the financial performance of the organization. If manufacturing companies in the food and beverage sub-sector are having difficulty with the availability of laboratories, leverage can be used as a method to improve financial performance. Further research is needed to investigate other aspects that have a major impact on the company's financial performance.

Analisis Pengaruh Pembiayaan LPEI Konvesional dan Syariah, Variabel Ekonomi Makro Terhadap Pertumbuhan Ekspor Indonesia

The purpose of this study is to evaluate the relationship between funding provided by LPEI in conventional and sharia forms to export growth, using two separate models to compare the two types of funding. This study also examines the relationship between inflation and the rupiah exchange rate on Indonesia's export growth. The analysis uses monthly data from 2015 to 2022 and ARDL approach in data analysis, with the help of EViews 12 to estimate the long-run and short-run impact of these variables on export growth. The results of this study show that in the short run, neither conventional nor sharia LPEI financing has a significant impact on export growth. The value of exports in the previous period and the previous two periods has a negative effect on current export growth. In contrast, export growth is positively affected by the value of exports in the previous three and four periods. Changes in the rupiah exchange rate in the previous period have a positive effect on export growth in the Islamic LPEI financing model, while changes in the inflation rate have no significant effect on export growth. In the long run, both conventional and Islamic LPEI financing do not have a major impact on export growth. The positive impact on export growth in the Islamic LPEI financing model is caused by fluctuations in the rupiah exchange rate in the long run. Changes in inflation do not have a significant impact on export growth based on other macroeconomic variables.

Depreciation and Trade Balance: An Exploration of the J-Curve Phenomenon in Indonesia

Research Originality: Global economic uncertainty has increased in recent years, leading to an appreciation of the US dollar relative to most global currencies, including the Indonesian rupiah. The novelty of this study is the inclusion of natural resource commodity price index variables, given the importance of these commodities in Indonesia's balance of trade.Research Objectives: This study aims to examine the effect of rupiah exchange rate depreciation on Indonesia's trade balance.Research Methods: This study uses a Vector Error Correction Model (VECM) to analyze Indonesia's balance of trade from January 2015 to December 2023, examining the potential J-Curve phenomenon resulting from the depreciation of the Indonesian rupiah.Empirical Result: Findings from the impulse response analysis suggest that the J-Curve phenomenon is present in Indonesia's balance of trade as a result of the rupiah's depreciation. The results of this study also confirm the positive effect of increasing natural resource commodity prices on Indonesia's trade balance.Implications: The implication of these findings is that exchange rate depreciation can improve Indonesia's trade balance only when natural resource commodity prices are rising. Conversely, if commodity prices decline, maintaining the stability of the rupiah exchange rate becomes crucial.JEL Classification: F11, F14, F31, Q02

The Influence of Economic Variables on Stock Prices of Telecommunications Companies

The general background fluctuation of stock prices is a critical concern for investors, particularly in dynamic economic environments where various indicators can significantly impact financial performance. The specific background of this study focuses on the telecommunications sector, which has been increasingly influenced by economic variables such as the Inflation Rate, SBI Interest Rate, Earnings Per Share, Rupiah Exchange Rate, and Company Fundamentals. Despite existing research, there is a knowledge gap regarding how these factors collectively influence stock prices in publicly listed telecommunications companies. This study aims to investigate the effects of these economic variables on stock prices from 2020 to 2023, utilizing a quantitative approach with secondary data obtained from annual financial reports of 16 companies. The results demonstrate that all examined variables—Inflation Rate, SBI Interest Rate, Earnings Per Share, Rupiah Exchange Rate, and Company Fundamentals—significantly affect stock prices. The novelty of this research lies in its comprehensive analysis of the interplay between these economic indicators specifically within the telecommunications sector. The implications of these findings suggest that investors and policymakers should consider these economic factors when making investment decisions, thereby enhancing their financial strategies and contributing to a more robust understanding of stock market dynamics in the telecommunications industry. Highlights: All examined economic variables significantly affect stock prices. The study analyzes data from 16 publicly listed telecommunications companies. Findings enhance investment strategies and understanding of market dynamics. Keywords: Inflation, Interest Rate, Earnings Per Share, Exchange Rate, Stock Price

The impact of the COVID-19 pandemic on the country's national economy: The Indonesian experience

Purpose: This study aims to examine the effects of inflation, exchange rates, and the Covid-19 pandemic on Indonesia's trade balance position and to develop an empirical estimation model to predict its position. Method: The data used in this research are the inflation rate, exchange rate of rupiah to the US dollar, export value, and import value of Indonesia from January 2012 to March 2021. The econometric model used in this study was a binary logistic regression model. Results: The results indicate that The regression coefficient of the inflation rate is negative at 0.3621, with an odds ratio of 0.696. This suggests that 1 percent in inflation reduces the probability of a trade balance surplus of 0.696. The regression coefficient for the exchange rate was positive at 2.18, with an odds ratio of 8.85. This means that every 2.72 rupiah increase in the exchange rate raises the probability of a trade balance surplus of 8.85 times. However, this study does not find empirical evidence that inflation, exchange rates, and pandemic of Covid-19 have no impact on the position of Indonesia's trade balance. Limitations: This study focuses on two factors believed to influence the position of trade balance in Indonesia: the inflation rate and foreign exchange rates. Contributions: This study provides insights into government policy.

The Effect of The Rupiah Exchange Rate on Inflation-Mediated Stock Prices in PT Unilever Indonesia Tbk

Indonesia's large population presents significant opportunities for the consumergoods industry. However, a company's ability to sustain its stock price requirescareful consideration of macroeconomic variables. This study investigates theeffect of the Rupiah exchange rate on the stock price of PT Unilever IndonesiaTbk during the period from 2022 to 2023. Employing a quantitative approach,the research examines macroeconomic data, particularly the Rupiah exchangerate, obtained from Bank Indonesia. Using purposive sampling, the studyfocuses on data relevant to the research period. Multiple linear regressionanalysis is applied to assess the relationship between the Rupiah exchange rateand stock price. The findings reveal that the Rupiah exchange rate has asignificant impact on the stock price of PT Unilever Indonesia Tbk.

Unleashing the Central Bank Digital Currency Revolution and its Impact on Exchange Rate: A Monetary Approach Synthesis

Research Originality: The introduction of CBDC by the Central Bank of Indonesia has increased the intensity of news about CBDC. Besides aiming to introduce the future direction of the payment system, the news potentially causes uncertainty and speculation in the market, which may impact the rupiah exchange rate.Research Objectives: This research analyzes the impact of CBDC news on the rupiah exchange rate, synthesizing a sticky price version of the monetary approach to the exchange rate. Research Methods: A CBDC News Index is constructed based on a compilation of news data from major online media between 2018 and 2023. The structural VAR (SVAR) method is thenemployed to investigate the impact of CBDC news on the exchange rate dynamic.Empirical Results: The results suggest a trend consistent with the hypothesis, indicating that news about CBDC may lead to pressure on the domestic currency, resulting in depreciation. However, the impact is not statistically convincing as the coefficient is not statistically different from zero. The monetary approach synthesis findings suggest that raising the policy rate is likely efficacious in counteracting the pressure of domestic currency depreciation. Meanwhile, other monetary approach variables exhibit anomalies related to exchange rate dynamics.Implications: As the central bank plans to implement a Central Bank Digital Currency (CBDC), it must carefully control the dissemination of information about what the CBDC will entail and how it will be rolled out. CBDC blueprint and official disclosure help reduce uncertainty and speculation about implementing CBDC.JEL Classification: D80, E58, F31How to Cite:Kurnia, A. S. & Assidiq, M. A. (2024). Unleashing the Central Bank Digital Currency Revolution and Its Impact on Exchange Rate: A Monetary Approach Synthesis. Etikonomi, 23(2), 271-286. https://doi.org/10.15408/etk.v23i2.37788

The Effect of Exchange Rate Volatility on Foreign Tourist Visits in Indonesia: GARCH Analysis

In this era of globalization, currency exchange rates are one of the crucial factors affecting a country's economy. The exchange rate of a country's currency plays an important role in economic stability and international trade, especially in the tourism sector. This study aims to conduct an in-depth analysis to identify patterns of rupiah exchange rate volatility using the Generalized Autoregressive Conditional Heteroscedasticity (GARCH) model, and then examine whether these patterns have a significant correlation with the number of foreign tourist arrivals in Indonesia. In analyzing the data, researchers conducted several classical assumption tests, namely the normality test and the heteroscedasticity test. The test results show that the data used, namely the rupiah exchange rate data and the number of foreign tourist visits, are not normally distributed and heteroscedastic. In this case, it resulted in researchers not use the Pearson correlation test so they used the Kendall-Tau correlation test and Granger Causality test which resulted in the two variables being correlated. Furthermore, GARCH modeling is carried out which provides forecasting on both data to increase in 2024. The results of this study are expected to provide a basis for consideration for stakeholders to determine policies, especially in the financial and tourism sectors.

Pembatalan Putusan Badan Arbitrase Nasional Indonesia Berdasarkan Pasal 70 Undang-Undang Nomor 30 Tahun 1999 tentang Arbitrase dan Alternatif Penyelesaian Sengketa Ditinjau dari Sifat Final dan Mengikat: Studi Kasus Putusan Nomor: 104 B/Pdt.Sus-Arbt/2019

The application of the provisions of Article 70 of Law Number 30 of 1999 has resulted in inconsistent interpretations and no firm rules. On the other hand, BANI's decision is final and binding. However, it is not uncommon for parties who are dissatisfied with the arbitration award to file a lawsuit to annul the BANI decision to the district court. This legal research is classified as normative juridical research which aims to examine legal certainty based on literature studies (documents or library research), case approaches, and applicable positive law. The results of this thesis research show that the cancellation of BANI's decision through Decision Number: 104 B/Pdt.Sus-Arbt/2019 was based on allegations that it contained elements contained in Article 70 of Law Number 30 of 1999, namely that after BANI's decision was taken, documents were found that decisive, which was deliberately hidden by Shimizu Corporation and PT. Hutama Karya. Thus, the annulment of the BANI decision Number 854/V/ARBBANI/2016, clearly and clearly includes the reasons for the cancellation of the arbitration award and the judge's considerations regarding the annulment of the BANI Decision through Decision Number: 104 B/Pdt.Sus-Arbt/2019, of the opinion that the claim proposed by Shimizu Corporation and PT. Hutama Karya to BANI, it was proven that there were several documents that were not submitted by Shimizu Corporation and PT. Hutama Karya, however, if the document is submitted, BANI's decision will be different or at least it will not grant the demands of Shimizu Corporation and PT. Hutama Karya in whole or in part, in this case, includes claims regarding fluctuations in the rupiah exchange rate.

Evaluation of the Impact of Monetary Policy on the Financial Performance of Manufacturing Companies: Implications of Interest Rates, Inflation and Macroeconomic Stability

This study aims to evaluate the impact of monetary policy on the financial performance of manufacturing companies in Indonesia, emphasising the implications of interest rates, inflation, and macroeconomic stability. Using a quantitative approach through multiple regression analysis, this study analyzes the relationship between monetary policy variables of Bank Indonesia's benchmark interest rate, inflation rate, exchange rate, foreign exchange reserves, and budget deficit with the company's financial performance, as measured using Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). Secondary data used in this study include the annual financial reports of manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2015-2023. The study results indicate that the benchmark interest rate has a significant negative effect on ROA and ROE. In contrast, the inflation rate shows varying impacts on NPM and other financial performance. In addition, macroeconomic stability is measured through indicators of the rupiah exchange rate against the USD, foreign exchange reserves, and budget deficit, which significantly affect the company's financial performance. These findings emphasize the importance of monetary policy and macroeconomic stability in determining the profitability of manufacturing companies in Indonesia. This study implies that corporate management needs to develop more adaptive strategies to deal with fluctuations in monetary policy and macroeconomic conditions. In addition, policymakers need to consider the long-term impact of monetary policy on the manufacturing sector to create an economic environment conducive to industrial growth. This study contributes significantly to the literature on the impact of monetary policy on corporate financial performance in emerging markets.

The Managerial Economics Implications Of Rupiah Exchange Rate Fluctuations On Investment And Corporate Growth

The managerial economics implications of Rupiah exchange rate fluctuations on investment and corporate growth are critical considerations for businesses operating in Indonesia's volatile economic environment. This study, conducted through an extensive literature review, explores the multifaceted impacts of exchange rate volatility on corporate decision-making and performance. Key findings indicate that fluctuations in the Rupiah increase investment risks and uncertainties, adversely affecting private sector investment and corporate growth. The review highlights that exchange rate volatility escalates production costs and diminishes profit margins, thereby impeding business expansion and competitive positioning in international markets. From a managerial perspective, effective risk management strategies such as hedging and portfolio diversification are essential for mitigating exchange rate risks. Additionally, efficient resource management and operational efficiency are pivotal in cushioning the adverse effects of currency fluctuations. The study underscores the importance of dynamic pricing strategies and financial instruments in stabilizing cash flows and sustaining growth amidst economic turbulence. This paper contributes to the theoretical and practical understanding of exchange rate impacts on managerial decisions and provides actionable insights for businesses to navigate currency volatility. Future research should focus on empirical analyses to validate the findings and explore case studies across various sectors to further elucidate the nuances of managing exchange rate risks in different business contexts.

Analisis Pengaruh Nilai Tukar Terhadap Ekspor Komoditas Unggulan Indonesia

his study aims to determine the effect of exchange rates on Indonesian commodity exports. Where the exchange rate is a comparison of the value or price of the Rupiah against other currencies. The dependent variable is the export of Indonesia's leading commodities, including Crude Palm Oil (Y1), Rubber (Y2) and textile (Y3) with the independent variable, namely the rupiah exchange rate (X). The data used in this study are time series data from 2012-2017. The method used is simple linear regression analysis, and is processed using the SPSS 16.0 program. The results of this study indicate that the rupiah exchange rate has a positive and significant effect on rubber export commodities and does not have a positive effect on palm oil (CPO) and textile commodities.

THE EFFECT OF INFLATION, INTEREST RATE AND COVID-19 PANDEMIC ON RUPIAH EXCHANGE RATE 2009-2023

This study aims to determine the effect of inflation, interest rates, and Covid-19 pandemic on rupiah exchange rate during the period from 2009 to 2023. This research utilizes secondary data obtained from Bank Indonesia and employs multiple linear regression analysis method with the assistance of SPSS software version 29.0. The research findings indicate that inflation has a positive and significant effect on the exchange rate of the rupiah, while interest rates have a negative and significant effect on the exchange rate of the rupiah. Additionally, the Covid-19 pandemic (as a dummy variable) has a positive and significant effect on the exchange rate of the rupiah. The Coefficient of Determination (R2) is 0.566, meaning that 56.6% of the variability in the exchange rate of the rupiah can be explained by inflation, interest rates, and the Covid-19 pandemic. Furthermore, the variable most dominant in influencing the exchange rate of the rupiah is inflation, accounting for 39.9%

FOREIGN EXCHANGE RATE PREDICTION OF INDONESIA'S LARGEST TRADING PARTNER BASED ON VECTOR ERROR CORRECTION MODEL

Foreign exchange rates from the currencies of trading partners are a critical element in the development of Indonesia's economic landscape. As an active country in international trade, Indonesia's economic health is highly dependent on trade partnerships, movements, and interactions of foreign exchange rates from Indonesia's main trading partners. To achieve economic stability, Bank Indonesia intervenes in the foreign exchange market to keep the Rupiah exchange rate within a reasonable range. Indonesia is committed to achieving several points in the Sustainable Development Goals (SDGs), such as point 17, which emphasizes partnerships, and point 8, which underlines inclusive and sustainable economic growth. This commitment is an important factor in Indonesia's economic development. Therefore, it is necessary to predict the exchange rate value of Indonesia's largest trading partners considering these SDG aspects. In this study, the Vector Error Correction Model (VECM) was used to predict the foreign exchange rate of Indonesia's largest trading partners. The data used in this study is secondary data obtained from the investing.com webpage, comprising weekly data from January 2021 to November 2023. The foreign exchange rates of Indonesia's largest trading partners have a cointegration relationship, indicating long-term relationships and similarities in movements. The best model identified is VECM (1), with a very accurate MAPE value of 3.29%. The Impulse Response Function (IRF) analysis shows that the Chinese Yuan responds variably to different currencies, stabilizing over time. Variance Decomposition reveals that short-term fluctuations in the Chinese Yuan are primarily influenced by itself (87.89%) and significantly by the Singapore Dollar, South Korean Won, and Taiwan Dollar. The Granger Causality Test indicates that the Philippine Peso influences 11 other exchange rates, refining the VECM model and improving prediction accuracy. Indonesia is expected to build economic collaborations that can help achieve economic stability.

Analysis of Determinants of the Rupiah Exchange Rate (Exchange Rate) against the US Dollar in 2016: Q1-2023: Q4

In foreign trade, exchange rates are one of the big factors that make a big difference. And although each country has its own currency, they all have different monetary values. To show how much one country's currency is worth compared to another country's currency, we need a measure called the exchange rate. The aim of this research is to find out how the exchange rate is related to things such as the amount of money in circulation, non-oil and gas exports, the balance of payments, and Indonesia's benchmark interest rate. A multiple regression analysis model was used to conduct the research. This research shows that the IDR/USD Exchange Rate is closely related to Indonesia's Balance of Payments, Money Supply (M2), Non-Oil and Gas Exports, and Reference Interest Rates. This relationship is real and good.

Analysis of The Interaction of Monetary Policy and Islamic Investment Towards Indonesia's Economic Growth

Economic growth is the main measure of development success, and the results of economic growth will be enjoyed by the community either by itself or with government intervention. Economic growth is an important indicator in the real sector. The interaction between monetary policy and sharia investment in influencing Indonesia's economic growth is the main focus of this study. This study aims to analyze the effect of the interaction of monetary policy (interest rates, exchange rates and money supply) and the interaction of sharia investment (sukuk, sharia stocks, sharia mutual funds) on Indonesia's economic growth for the period 2000-2022. This type of research is quantitative research using time series data from secondary data with the Vector Error Correction Model (VECM) analysis method with the help of Eviews software. The results of this study indicate that the variables of short-term interest rates, SUKUK, sharia stocks, sharia mutual funds have a positive and significant effect on economic growth, while the rupiah exchange rate (KURS), the amount of money in circulation on economic growth show a negative and insignificant effect. The variables of long-term interest rates, rupiah exchange rates or KURS, the amount of money in circulation SUKUK, sharia stocks, mutual funds have a positive and significant effect on economic growth

Error Correction Model (ECM) For Macroeconomic Factors And LQ45 Stock Price Index

This research aims to test the causal effects of the inflation rate empirically, the Rupiah exchange rate against the United States Dollar, and world crude oil prices on the LQ45 stock price index. In its testing, this research uses the Error Correction Model (ECM) and uses data every month from 2000 to 2022. The research results show that the inflation rate, exchange rate and world gold prices significantly affect the LQ45 stock price index. Furthermore, the inflation rate and exchange rate have a negative influence on the LQ45 index. Not optimal company growth due to high inflation and exchange rates will affect public market share demand, thereby reducing share prices. Then, world crude oil prices positively influenced the LQ45 index. These results support previous research findings that changes in world crude oil prices positively affect stock market prices in developing countries.

Determinan stabilitas perbankan di Indonesia: Pendekatan makro dan mikro prudensial

Banks have a very important role in the economy. Not only as financial intermediaries. They have also played a big role in the effectiveness of monetary policy. Therefore, bank stability is very important. This research aims to determine the influence of micro-prudential variables represented by CAR, NPL, and LDR variables, as well as the influence of macro-prudential variables represented by the Rupiah exchange rate variable against USD, inflation, interest rates, and IHSG, on bank stability in Indonesia, both in the short and long term. Using the vector error correction model (VECM) analysis technique, this research provides results that microprudential variables and macroprudential variables are both proven to have an influence on banking stability in Indonesia. Micro-prudential indicators such as CAR and LDR have been proven to have a positive effect on banking stability. Meanwhile, NPLs have a negative effect on banking stability. Likewise for macro-prudential indicators: the exchange rate and inflation have a negative effect on financial system stability. Meanwhile, interest rates and IHSG have a positive effect on banking stability. The impact of surprises or shocks that occur in micro-prudential and macro-prudential variables on banking stability is permanent. The implication of the findings in this research is that Bank Indonesia and the Financial Services Authority have a very large role in achieving banking stability in Indonesia.