Tag Archives: Interest Rate of Bank Indonesia

Fluctuation Rate Analysis of Rupiah Exchange in the Indonesian Open Economy (Published)

This research aimed to analyze the long-term balance between KURS (Rate of Exchange), inflation (INF), Foreign Direct Investment (FDI), interest rate of Bank Indonesia (SBI), and the degree of openness of Economics (DKE) An open economy Indonesia using time series data period 1998: 1-2016: 4. Models Autoregressive Distributed Lag (ARDL) was used to observe the effect of these variables. The results show that there is a balance of long-term fluctuations in the exchange Rate against the US dollar which is influenced by the variable inflation and SBI are negatively correlated with the exchange rate. While the FDI variable and the degree of economic openness is positively correlated with the exchange rate. The degree of openness of the economy, inflation, FDI leads to fluctuations on the exchange rate. In the long term, SBI gives a significant effect on the exchange rate. Among the exchange rate with the degree of economic openness has a positive and significant impact. This means that increasing the degree of economic openness, it will result in the appreciated (US dollar depreciated). Economic openness leads to significant fluctuations in exchange rates in the short term and long term.

Keywords: Autoreggressive Distribured Lag (ARDL), Degree of Openness, Exchange rate rupiah/US $, Foreign Direct Investment, Inflation, Interest Rate of Bank Indonesia