The impact of Rupiah/USD exchange, on the Indonesian manufacturing sectors in 2005-2016

• Wasiaturrahma, I Ketut Shandy Swastika Faculty of Economy and Business, Universitas Airlangga

Abstract

Currently, Indonesia is developing its manufacturing sector. The purpose of this study is to examine and analyze the determinants of manufacturing sector output. Rupiah/USD exchange rate, credit interest, FDI, and import of the manufacturing sector have a significant effect on the output of Indonesia's manufacturing sector. Based on the results of the short-term estimation, it can be concluded that the output of the manufacturing sector in lag 2, credit interest rate in lag 1 and lag 2, FDI lag 1, and imports of manufacturing lag 1 have a significant effect on the output of Indonesia's manufacturing sector.