Research Article
The Analysis of Factors Affecting Inflation in Indonesia
@INPROCEEDINGS{10.4108/eai.1-11-2022.2326164, author={Al Bina and Muhammad Fitri Rahmadana and Muhammad Yusuf}, title={The Analysis of Factors Affecting Inflation 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={inflation money supply rupiah exchange rate bi rate gross domestic product exports and imports}, doi={10.4108/eai.1-11-2022.2326164} }- Al Bina
Muhammad Fitri Rahmadana
Muhammad Yusuf
Year: 2023
The Analysis of Factors Affecting Inflation in Indonesia
ICOSTA
EAI
DOI: 10.4108/eai.1-11-2022.2326164
Abstract
Inflation is the monetary policy targer for economic stability. Inflation will directly effect economic dynamics in the short term and the long term. Purpose of research to analyze the factors influencing inflation in Indonesia. Research is using the Vector Error Correction model applied to the time series data and from this model provides forecasting and structural analysis in the long term. The results showed that the money supply, BI rate, gross domestic product, imports and exports did not have much significant impact on Indonesia inflation in the short term, but the exchange rate that had a significant impact on Indonesia was inflation. In the long run, the money supply, BI rate, exchange rate, and exports have a significant effect on Indonesia inflation, while gross domestic product and imports have no impact on Indonesia inflation.