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The Effect of Money Supply, Inflation, Investment, and Exchange Rate On Gross Domestic Product (GDP) in Indonesia

Year: 2025

Type: article

Abstract: Gross Domestic Product (GDP) represents the total output of value added produced by all business units within a country. Indonesia's GDP tends to fluctuate due to various factors such as money supply, inflation, investment, and exchange rates. This study aims to analyze the effects of these factors on Indonesia's GDP using a quantitative approach with multiple linear regression analysis. The research employs secondary data from the World Bank covering the 1993–2023 period. Results indicate that money supply and investment positively influence GDP, whereas inflation and exchange rates exert negative impacts. Simultaneously, all variables significantly affect GDP based on the F-statistic. The findings provide insights for policymakers to manage macroeconomic variables for sustainable economic growth.

Source: East Asian Journal of Multidisciplinary Research

DOI: 10.55927/eajmr.v4i2.59

Authors: Gymnastiar Eka Aurillina Pasaribu, Tony Seno Aji

Institution: Universitas Negeri Surabaya

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

OpenAlex ID: W4408230793

FWCI:

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