Analysis of Monetary Instability Factors towards the Indonesian Automotive Industry

Abstract

Economic growth is believed to be an indicator of economic movement. The aim of this study is to study and analyze the factors of monetary instability in the automotive industry in Indonesia. This research method uses a causal relationship. The type of data used is secondary data Interest rates, GDP, Rupiah Exchange Rate, Inflation and the automotive industry in the form of time series and the analysis technique uses multiple linear regression with the residual approach. The research results obtained R square 92.931%, meaning that the magnitude of the effect of Interest rates, GDP, Rupiah Exchange Rate, and Inflation simultaneously on the automotive industry is very significant up to 92.931%, while the remaining 7.069% is the influence of other factors that are not included in the research variables. Partially Interest rates, GDP, and the Rupiah Exchange rate are significant and positive for the automotive industry. While the inflation variable is not significant and positive for the automotive industry, this is because at this time, vehicles have become a primary need, so rising inflation is not too much of an obstacle; The increase in vehicle prices in Indonesia is relatively small each year. The availability of various credit facilities by banking institutions and non-banking financial institutions; In general, the increase in inflation in Indonesia was relatively low (below two digits).