ANALYSIS THE FACTORS OF RUPIAH DEPRECIATION IN INDONESIA 2013

ABSTRACT This research analysis the factors of rupiah depreciation in Indonesia in period January – December 2013. Ordinary Least Square (OLS) is the method used in this research. In writing this research the author uses secondary data using time series data and data strongly associated with the problem discussed in this research. The dependent variable is Exchange rate, and three independent variables are external debt, Composite Price Index (IHSG), export, and import value from several resources; Bank of Indonesia Library, Bureau Central of West Sumatera Statistic (BPS), Bank of Indonesia Website and also data obtained by means of reviews references by reading and studying book, articles, journal, and information either through bulletin and others. The result shows that external debt, composite price index (IHSG), and export are significantly and positively impact on exchange rate in Indonesia 2013. Coefficient of determination of R2 = 0.968, and this value shows a high measurement for the independent variables to explain their effect on the dependent variable in the model. It means that the variation of the dependent variable can be explain by the independent variables about 96.8%, when the rest of 3.2% are explained by factors outside the model. Keywords: Exchange Rate, External Debt, Composite Price Index (IHSG), Export, Import, and Ordinary Least Squar