THE DETERMINANTS OF INFLATION IN INDONESIA: PARTIAL ADJUSTMENT MODEL APPROACH

Article Sidebar

PDF
Published: Oct 30, 2018
DOI: https://doi.org/10.18196/jesp.19.2.5007
Keywords:
Inflation, Monetary Policy, PAM

Main Article Content

Yosefina Don Sama Lelo
Universitas Pembangunan Nasional Veteran Yogyakarta
Rini Dwi Astuti
Universitas Pembangunan Nasional Veteran Yogyakarta
Sri Suharsih
Universitas Pembangunan Nasional Veteran Yogyakarta

Abstract

Inflation is one of the economic issues that always being targeted by the government, particularly central bank because it could adversely influence the economy. For the past view years, the inflation targeting framework as the part of monetary policy has been successfully implemented where the interest rate is the operational target. In view of past investigations, there are fundamental factors that affect inflation, for example, interest rate, exchange rate, and money supply. This study aims to evaluate the impact of those factors on inflation both in the short and long run. The estimation uses monthly data from January 2013 to November 2017, which was obtained from Indonesian Banking statistics. The use of Partial Adjustment Model illustrates how interest rates, exchange rate, and money supply negatively and significantly affect inflation on both short and long run. This regression result is consistent with the finding of previous studies which strengthen the evidence that the government should maintain the inflation rate through those variables.

Article Details

How to Cite
Lelo, Y. D. S., Astuti, R. D., & Suharsih, S. (2018). THE DETERMINANTS OF INFLATION IN INDONESIA: PARTIAL ADJUSTMENT MODEL APPROACH. Jurnal Ekonomi &Amp; Studi Pembangunan, 19(2), 157–166. https://doi.org/10.18196/jesp.19.2.5007
Issue
Vol. 19 No. 2: October 2018
Section
Articles

License

You are free to:

  • Share — copy and redistribute the material in any medium or format
  • Adapt — remix, transform, and build upon the material for any purpose, even commercially.

The licensor cannot revoke these freedoms as long as you follow the license terms.

Under the following terms:

  • Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
  • ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.
  • No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.

Creative Commons License

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

Baasir, F. (2003). Pembangunan dan Crisis. Jakarta: Pustaka Harapan.

Badan Pusat Statistik Indonesia. Data Inflasi tahun 2008-2017. (Online) website: bps.co.id.

Bank Indonesia. Laporan Bulanan 2008-2017. (Online) website: www.bi.go.id.

Fadel. (2013). Analisis Pengaruh PDB, Suku Bunga Deposito, dan Nilai Tukar Terhadap Inflasi di Indonesia Periode 1981-2011. Thesis. Unpublish.

Ghozali, I. (2009). Aplikasi Analisis Multivariate Dengan Program SPSS. Semarang: Badan Penerbit Universitas Diponegoro.

Gujarati. N.D. (2003). Basic Econometric, 4th Ed. USA: Mc.Graw Hill MacMillan Publisher.

Hendrawan, R. (2016). Makalah Mengenai Dampak Lemahnya Nilai Rupiah Ter-hadap Dollar Bagi Perekonomian Indonesia. (Online) https: //rizalhendrawankd.wordpress.com/ (Accessed: 18th November 2016)

Insukindro. (1993). Ekonomi Uang dan Bank. Yogyakarta: BPFE.

Mizaroh. (2014). Pengaruh Pengeluaran Pemerintah dan Jumlah Uang Beredar terhadap Inflasi. (Online) Wordpress Ekonomi Pembangunan. http://mizaroh.wordpress.com/ekonomi-pembangunan/97-2014.

Nopirin. (1987). Ekonomi Moneter. 4th Ed. Yogyakarta: BPFE.

Nugroho, P.W.B., and Maruto, U. (2012). Analisis Faktor-Faktor Yang Mempengaruhi Inflasi Di Indonesia Periode 2000–2011 Jurnal of Accounting, Universitas Diponegoro, 1(1).

Otoritas Jasa Keuangan. (2013). Statistik Perbankan Indonesia. Volume 12 Nomor 01 Desember 2013.

Otoritas Jasa Keuangan. (2014). Statistik Perbankan Indonesia. Volume 13 Nomor 01 Desember 2014.

Otoritas Jasa Keuangan. (2015). Statistik Perbankan Indonesia. Volume 14 Nomor 01 Desember 2015.

Otoritas Jasa Keuangan. (2016). Statistik Perbankan Indonesia. Volume 15 Nomor 01 Desember 2016.

Otoritas Jasa Keuangan. (2017). Statistik Perbankan Indonesia. Volume 16 Nomor 01 Desember 2017.

Perlambang, H. (2012). Analisis Pengaruh Jumlah Uang Beredar, Suku Bunga Sbi, Nilai Tukar Terhadap Tingkat Inflasi. Media Ekonomi, 19(2).

Rahmawati. (2011). Pengaruh Jumlah Uang Beredar, Pengeluaran Pemerintah, dan Suku Bunga terhadap Tingkat Inflasi di Nanggroe Aceh Darussalam. Jurnal Aplikasi Manajemen. 9(1).

Suhaedi, et al. (2000). Suku Bunga Sebagai Salah Satu Indikator Ekspetasi Inflasi. Buletin Ekonomi Moneter dan Perbankan, March 2000.

Suparmoko. (1992). Ekonomi Pembangunan. 5th Ed. Yogyakarta: BPFE UGM.