ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI KURS DI INDONESIA (ANALISIS ECM)

Exchange Rate is one of the most important instrument in a country that submitted an open-economic system. Which those country committed an economic activity in form of an export or import of a considered superior product by those country. The role of Exchange Rate is lay in comparison of domestic currency in the manner of foreign currency. The one of the way that the government carry out to take into custody the value of exchange rate is casting the balance of Balance of Payments. But then, the value of Balance of Payments can be caused by several factors, those factors could be Foreign Direct Investment (FDI), Inflation, and BI rate. In this study, the method of analysis used Method of ECM (Error Correction Model). The result of this study concluded that the negative effect on the Foreign Direct Investment (FDI) of Exchange Rate in the short term and has positive influence in the long term but both of them are not significant. Inflation has positive influence on Exchange Rate in the long term and short term and significant for both of them. While the BI rate has negative influence on Exchange Rate in the long term and short term but not significant for both of them