Analysis Of The Economic Bilateral Relationship Indonesia – China On Balance Of Payments In Indonesia

This study aims to analyze how the influence of
Indonesia-China bilateral economic relations on the Indonesian
economy in 2005-2018. This study uses Indonesia's balance of
payments variable to measure the Indonesian economy. By
analyzing the theory Balance Of Payment Keynesian so variable
in this study include, Indonesia's balance of payments as a
dependent variable and the rupiah / yuan exchange rate,
Indonesia's gross domestic product (Indonesia's GDP), China's
gross domestic product (China's GDP), Indonesia's interest
rates, and China's 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, China's 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,
China's 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