Analysis of the Effect of Remittance Receipts, Rupiah Exchange Rate and BI Interest Rate on the Amount of Foreign Exchange Reserves in Indonesia
Year: 2024
Type: article
Abstract: The development of the Indonesian economy today continues to show increasing integration with the world economy, such as international trade.One form of capital flow that enters the country is foreign exchange from international trade.Adequate foreign exchange reserves provide confidence to the market and investors that the country can meet its international payment obligations.However, Indonesia's foreign exchange reserves show a fluctuating trend caused by various external and internal factors, such as changes in global economic conditions, government monetary and fiscal policies, increased international trade activities, exchange rates between countries, and changes in central bank interest rates.This study aims to ( 1) analyze the simultaneous influence of remittances from Indonesian migrant workers, the rupiah exchange rate and Bank Indonesia interest rates on the amount of foreign exchange reserves in Indonesia and ( 2) partially analyze remittances from Indonesian migrant workers, the rupiah exchange rate and Bank Indonesia interest rates on the amount of foreign exchange reserves in Indonesia.This study uses a quantitative research design with an associative explanation.This study uses time series data for the period 1993-2022 with a total of 30 observations.The data collection technique uses non-participant observation techniques.This hypothesis testing uses multiple linear regression analysis.According to the study's findings, the amount of Indonesia's foreign exchange reserves is significantly and partially impacted by the rupiah exchange rate and the remittances made by Indonesian migrant workers, while the Bank Indonesia interest rate (BI Rate) has a significant and partially negative impact.Remittances from migrant workers, the value of the rupiah, and the interest rate of Bank Indonesia all have an impact on Indonesia's foreign exchange reserves from 1993 to 2022.
Author: Ni Luh Putu Ema Juniantari, I Ketut Sudibia
Language: English
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4411971333