Analysis of the Economic Bilateral Relationship Indonesia - China On Balance of Payment in Indonesia
Sri Wulandari (a*), Dr. M Yusuf, M.Si (b), Andri Zainal, M.Si,Ph.D,Ak,CA (b)
Medan State University
Abstract
This study aims to analyze how the influence of Indonesia-China bilateral economic relations on the Indonesian economy in 2005-2018. This study uses Indonesias balance of payments variable to measure the Indonesian economy. By analyzing the theory Balance Of Payment Keynesian so variable in this study include, Indonesias balance of payments as a dependent variable and the exchange rate IDR/CNY, Indonesias gross domestic product (Indonesias GDP), Chinas gross domestic product (Chinas GDP), Indonesias interest rates, and Chinas interest rates as an independent variable. The method used in this study is the ECM method (Error Correction Model). The results showed that in the short term the exchange rate IDR / CNY, Chinas Gross Domestic Product, the BI interest rate had a positive and significant effect on the balance of payments in Indonesia while the Indonesian Gross Domestic Product and Chinese interest rate had a negative and significant effect on the balance of payments in Indonesia. In the long run the exchange rate IDR / CNY has a positive and significant effect, Chinas Gross Domestic Product has a positive but not significant effect, the BI interest rate has a negative and no significant effect, Indonesia Gross Domestic Product has a negative and significant effect and the Chinese interest rate has a negative and no significant effect on balance of payments in Indonesia.
Keywords: Keyword: Indonesia, China, Indonesias Balance of Payments, Rupiah / yuan Exchange Rates, Indonesian GDP, Chinas GDP, Indonesias Interest Rates, Chinas Interest Rates.
Topic: Economics, Business and Management Education