Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
The Effect of Inflation and Exchange Rates on the BI Rate and Their Impact on Indonesia's Economic Growth
I Wayan Budi Artha
29 August 2026 · Vol. 2, Issue 8, pp. 573-578
DOI: 10.65150/EP-jefrr/V2E8/2026-12
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What is this article about?
This study aims to analyze the influence of inflation and the USD exchange rate on the BI Rate and their impact on Indonesia's economic growth. The BI Rate, as a monetary policy instrument, plays a crucial role in maintaining economic stability and controlling inflation.
Article at a glance
- Published
- 29 August 2026
- Volume / issue / pages
- Vol. 2, Issue 8, pp. 573-578
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
This study aims to analyze the influence of inflation and the USD exchange rate on the BI Rate and their impact on Indonesia's economic growth. The BI Rate, as a monetary policy instrument, plays a crucial role in maintaining economic stability and controlling inflation. This study uses a quantitative approach with multiple linear regression to analyze the influence of inflation and the exchange rate on the BI Rate, and simple linear regression to analyze the impact of the BI Rate on economic growth. The data used are secondary data obtained from the Central Statistics Agency (BPS) and Bank Indonesia (BI) for 15 years, from 2011 to 2025, on a quarterly basis. The results show that inflation has a positive and significant effect on the BI Rate, while the exchange rate has no effect. Simultaneously, inflation and the exchange rate have a significant effect on the BI Rate. Furthermore, the BI Rate has a positive and significant effect on economic growth. These results indicate that the BI Rate acts as a variable transmitting the influence of inflation and the exchange rate on economic growth. However, the coefficient of determination indicates that other factors outside the model influence the BI Rate and economic growth. This study implies that inflation control is a key factor in BI Rate setting policy and contributes to Indonesia's economic stability and growth.
Keywords: Inflation, Exchange Rate, BI Rate, Economic Growth, Monetary Policy
Cite this article
I Wayan Budi Artha (2026). The Effect of Inflation and Exchange Rates on the BI Rate and Their Impact on Indonesia's Economic Growth. Journal of Economic, Finance Research and Review, 2(8), 573-578. https://doi.org/10.65150/EP-jefrr/V2E8/2026-12
@article{I2026,
title = {The Effect of Inflation and Exchange Rates on the BI Rate and Their Impact on Indonesia's Economic Growth},
author = {I Wayan Budi Artha},
journal = {Journal of Economic, Finance Research and Review},
year = {2026},
volume = {2},
number = {8},
pages = {573-578},
doi = {10.65150/EP-jefrr/V2E8/2026-12},
url = {https://doi.org/10.65150/EP-jefrr/V2E8/2026-12}
}Questions about this article
Who wrote this article?
I Wayan Budi Artha.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 2, Issue 8, pages 573-578, published by EP Journals Group on 29 August 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V2E8/2026-12 (https://doi.org/10.65150/EP-jefrr/V2E8/2026-12).
How do I cite this article?
APA: I Wayan Budi Artha (2026). The Effect of Inflation and Exchange Rates on the BI Rate and Their Impact on Indonesia's Economic Growth. Journal of Economic, Finance Research and Review, 2(8), 573-578. https://doi.org/10.65150/EP-jefrr/V2E8/2026-12
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