Proceedings of the 2nd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2022, 16 April 2022, Semarang, Indonesia

Research Article

The Impact of Foreign Debt Financing and Domestic Private Credit Financing, Foreign Direct Investment, Exchange Rate, And Debt Service Ratio to Indonesia Gross Domestic Bruto

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  • @INPROCEEDINGS{10.4108/eai.16-4-2022.2320039,
        author={Yohanes R. Agandhi and Rudi Bratamanggala and Pudji Astuty and Sri Sungkowati},
        title={The Impact of Foreign Debt Financing and Domestic Private Credit Financing, Foreign Direct Investment, Exchange Rate, And Debt Service Ratio to Indonesia Gross Domestic Bruto},
        proceedings={Proceedings of the 2nd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2022, 16 April 2022, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICLSSEE},
        year={2022},
        month={8},
        keywords={domestic private credit financing; debt service ratio; foreign direct investment; and foreign debt financing},
        doi={10.4108/eai.16-4-2022.2320039}
    }
    
  • Yohanes R. Agandhi
    Rudi Bratamanggala
    Pudji Astuty
    Sri Sungkowati
    Year: 2022
    The Impact of Foreign Debt Financing and Domestic Private Credit Financing, Foreign Direct Investment, Exchange Rate, And Debt Service Ratio to Indonesia Gross Domestic Bruto
    ICLSSEE
    EAI
    DOI: 10.4108/eai.16-4-2022.2320039
Yohanes R. Agandhi1,*, Rudi Bratamanggala1, Pudji Astuty1, Sri Sungkowati1
  • 1: Universitas Borobudur, Jakarta, Indonesia
*Contact email: combest75@gmail.com

Abstract

The purposes of the article are to provide a review at a glance of the impacts of foreign debt financing, domestic private credit financing, foreign direct investment, debt service ratio, and exchange rate on the gross domestic product (GDP) of Indonesia. The study shows that foreign debt financing and domestic private credit financing have positive correlations but foreign direct investment, exchange rate, and debt service ratio have a negative correlation to GDP. Foreign debt has sovereign risk and should be managed prudently in terms of governance and administration and efforts to attract foreign direct investment (FDI) should be increased and enhanced.