ABSTRACT

This research aims to analyze the influence of exports, imports, money supply and interest rates on the Rupiah exchange rate in Indonesia. Using the multiple linear regression method and time series data for the period 1994 to 2023. The research results show that the export variables and interest rates have a significant positive influence on the Rupiah exchange rate. On the other hand, the import variables and money supply have a significant negative influence on the Rupiah exchange rate. This finding is in accordance with macroeconomic theory which states that increases in exports and interest rates encourage exchange rate appreciation, while increases in imports cause exchange rate depreciation. This research provides a link that government policy in increasing exports and stable interest rates is very important in supporting the stability and strengthening of the Rupiah exchange rate. On the other hand, policies related to imports and the money supply must be reviewed to reduce their negative impact on the exchange rate. It is hoped that the results of this research can be used as consideration for policy makers in designing more effective macroeconomic strategies to strengthen the national currency.