Proceedings of the 4th International Conference on Science and Technology Applications, ICoSTA 2022, 1-2 November 2022, Medan, North Sumatera Province, Indonesia

Research Article

Determinant Analysis of Capital Goods Imports in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.1-11-2022.2326163,
        author={Heni  Widiya and Muhammad Fitri Rahmadana and Fitrawaty  Fitrawaty},
        title={Determinant Analysis of Capital Goods Imports in Indonesia},
        proceedings={Proceedings of the 4th International Conference on Science and Technology Applications, ICoSTA 2022, 1-2 November 2022, Medan, North Sumatera Province, Indonesia},
        publisher={EAI},
        proceedings_a={ICOSTA},
        year={2023},
        month={1},
        keywords={national income exchange rate foreign exchange reserves inflation interest rates imports of capital goods},
        doi={10.4108/eai.1-11-2022.2326163}
    }
    
  • Heni Widiya
    Muhammad Fitri Rahmadana
    Fitrawaty Fitrawaty
    Year: 2023
    Determinant Analysis of Capital Goods Imports in Indonesia
    ICOSTA
    EAI
    DOI: 10.4108/eai.1-11-2022.2326163
Heni Widiya1,*, Muhammad Fitri Rahmadana1, Fitrawaty Fitrawaty1
  • 1: Universitas Negeri Medan
*Contact email: Heniwidia849@gmail.com

Abstract

Capital goods are man-made goods that are useful for the production of goods or the provision of services. In this case, the impact of the import of capital goods on national income, exchange rates, currency reserves, inflation and interest rates are analyzed in the long and short term. The data for this study used secondary data from Bank Indonesia and the Central Statistics Office time series from the first quarter of 2005 to the fourth quarter of 2020. In this case,using the error correction model analysis method. The results showed that in the long run national income, inflation, interest rates have a positive insignificant effect, while the exchange rate has a significant negative effect, foreign exchange reserves have a significant positive effect. In the short term, the national income, exchange rates, foreign exchange reserves, inflation, interest rates do not significantly affect the import of capital goods to Indonesia.