Analyzing The Impact Of Rupiah Exchange Rate, Bi Interest Rate, And Economic Growth On Inflation In Indonesia (2004-2023): A Quantitative Approach

The objective of this study is to ascertain and examine the impact of the exchange rate, interest rate (BI rate) and economic growth on inflation in Indonesia between 2004 and 2023. This will be achieved by analysing the influence of these variables both partially and simultaneously. This research employs a quantitative approach, utilising a population and sample. The data employed in this study is of a secondary nature, obtained from relevant agencies and duly compiled and published. The independent variables employed in this study are the rupiah exchange rate, the interest rate (BI rate) and economic growth, whereas the dependent variable is inflation. The analysis method employed in this study was multiple regression. The findings revealed that the rupiah exchange rate variable exerted a statistically insignificant and positive influence on inflation. Conversely, the interest rate (BI rate) variable demonstrated a statistically significant and negative influence on inflation. Additionally, the economic growth variable exhibited a statistically significant and positive influence on inflation. Furthermore, the simultaneous analysis indicated that the rupiah exchange rate, interest rates (BI rate) and economic growth variables collectively exerted a statistically significant and positive influence on inflation.