Credit Booms: Determinant Factors and Its Impact on Indonesian Economy

This study analyzed the factors affecting credit booms during the period 1993-2010 and its impact on Indonesian Economy. Indonesian credit was specified as a function of Real Interest Rate and Gross Domestic Product of Indonesia. Ordinary Least Square method were used to carry out to the study. According to the result, Real Interest Rate significantly and negatively effect the credits of Indonesia, Gross Domestic Product is significantly and positively effect the credits of Indonesia. Keywords : credit booms, real interest rate, and GDP