ANALISIS SEKTOR UTAMA EKONOMI INDONESIA TERHADAP UTANG LUAR NEGERI SERTA PERSPEKTIFNYA DALAM EKONOMI ISLAM

The debt policy adopted by the Indonesian state is not only to fulfill the budget deficit but also intent on catch up with the developed countries. Parameters that can be used to see the development of existing debt in a country can be seen from the condition of the main sectors of the country itself. This study aims to analyze how the internal condition of the Indonesian state towards foreign debt. The time span used in this study is quarterly data from 2010 to 2020, using the Error Correction Model analysis method. The results showed that in the long-term estimation, the variables of GDP, exchange rate, and investment had a significant effect on foreign debt, while the variables of net exports, foreign exchange reserves, and the BI rate had no effect. In the short-term estimation, only investment variables have an effect, while the variables of GDP, exchange rate, net exports, foreign exchange reserves, and the BI rate have no significant impact