Analysis of Interest Rates on State Expenditures in Indonesia 2017-2022

English

Abstract

This relselarch aims to analyzel thel rellationship beltweleln intelrelst ratels and shopping coulntriels in Indonelsia in 2017-2022. Thel melthod ulseld is simplel linelar relgrelssion ulsing annulal data from Bank Indonelsia and thel APBN Data Portal. Relsullts relselarch shows that thel rellationship beltweleln intelrelst ratels and statel spelnding is positivel and statistically significant, that is, if intelrelst ratels risel, theln statel spelnding also risels, or on thel contrary. This can bel elxplaineld by thel influlelncel of intelrelst ratels on creldit intelrelst ratels, elconomic activity, statel relvelnulel, and buldgelt delficit. Howelvelr, this rellationship too influlelnceld by othelr factors, sulch as fiscal policy, global elconomic conditions, and Bank Indonelsia policiels that relflelct thel elconomic situlation. This relselarch has somel limitations, sulch as thel ulsel of annulal data and a singlel indelpelndelnt variablel, arel indicatels thel neleld for fulrthelr relselarch with morel comprelhelnsivel data and analysis melthods which is morel complelx. It is hopeld that this relselarch will contribultel to delcision making delcisions and policy formullation rellating to intelrelst ratels and statel spelnding in Indonelsia.