The Response of Bank of Indonesia's Interest Rates to the Prices of World Crude Oil and Foreign Interest Rates

This research aimed to investigate the response of interest rates set by Bank of Indonesia to the prices of world crude oil and foreign interest rates. It analyzed monthly data which spanned from July 2005 to October 2015. The tool of analysis used was the difference equation model. Result of the test showed that there was a positive response of the interest rate determined by Bank of Indonesia to the price of world crude oil and foreign interest rates. The interest rates maintained by Bank of Indonesia increased (decreased) by 0.135% in response to each 1% increase (decrease) in the price of world crude oil. The interest rates also increased (decreased) by 0.081% in response to each 1% increase (decrease) in foreign interest rates. Keywords: World crude oil price, foreign interest rates, domestic interest rates, difference equation model JEL Classications: C540, E430

A Model of the Dynamic of the Relationship between Stock Prices and Economic Growth of Indonesia

This study aimed to examine the dynamic of the relationship between stock prices and economic growth in Indonesia over the period from the first quarter 2004 to the fourth quarter 2013. The study analyzed two types of quarterly data, i.e., data about stock prices that referred to stock price index issued by Indonesian Stock Exchange and data of economic growth that referred to the percentage of changes in GDP. To analyze the dynamic of the relationship, the general univariate causal model of LVAR was employed. Findings revealed that there was a significant dynamic of relationship between the two variables under investigation. The relationship was positive, meaning that when stock prices went up (went down), then the economic growth of Indonesia went up (went down) as well. Each 1% increase (decrease) in the stock prices was always followed by 0.09% increase (decrease) in Indonesian economic growth

Analisis Matematika Perbandingan Metode Divide & Broadcast Dan Metode Divide & Partial Broadcast

In this article we discuss the comparison of Divide & Broadcast Method (DBM) and Divide & Partial Broadcast Method. Both are data processing methods. From mathematical point of view the methods are to seek a relation of two sets of a large amount of data, too large for one processor. The comparison is based on three basic computations of the matching of two sets i.e. multiplication, addition and logarithm. The comparison is to obtain the efficiency of the methods. Previous researches have shown that based on multiplication and addition DPBM is more efficient than DBM, but the result based on logarithm is still unknown. In this article we report our result on the comparison of DBM and DPBM based on logarithm computation

Modelling of the Dynamics of Relationship between World Crude Oil Prices and Indonesia’s Trade Balance: An LVAR Analysis

This paper aims to examine the long-term dynamics of relationship between world crude oil prices and Indonesia’s trade balance, and establish a model of the relationship dynamics. The data used were the monthly data covering the period from January 2004 to October 2014, and were analyzed by using the LVAR (p, q) causal model proposed by Agung (Time series data analysis using eview. Singapore : John Wiley & Son, 2009). Results of data analysis demonstrated a significant long-term dynamic relationship between world crude oil prices and Indonesia’s trade balance. The relationship between those two variables was negative, i.e., if the prices of world crude oil increase, the trade balance decreases. Keywords : Crude oil price, trade balance, LVAR analysis

Gini ratio analysis in North Buton Regency

This research was carried out in North Buton Regency in 2020. The purpose of this study was to determine the income inequality of the community both between the Regency and the District and between the District and the District and the variables that cause income inequality in the North Buton Regency. The results of the Gini Ratio analysis show that the income distribution of the people of North Buton Regency is relatively unequal with a Gini coefficient value of 0.36. Districts with low-income inequality (a) West Kulisusu District with a Gini coefficient of 0.24 (b) and Bonegunu District with a Gini coefficient of 0.29. Having moderate-income inequality (a) Kulisusu sub-district with a Gini coefficient of 0.32. (b) Wakorumba sub-district with a Gini coefficient of 0.32 and (c) Kambowa District with a Gini coefficient of 0.37. Meanwhile, sub-districts that have high-income inequality (a) North Kulisusu sub-district have a Gini coefficient of 0.43. The main variables that cause income inequality in North Buton Regency are differences in natural resource potential, differences in community skills and work ethic, differences in ownership of production factors, differences in regional accessibility, differences in community livelihoods, and government and private investment

The Effect of Crude Oil Prices on Economic Growth in South East Sulawesi, Indonesia: An Application of Autoregressive Distributed Lag Model

This research aims to examine the effect of crude oil prices on economic growth in South East Sulawesi, Indonesia. Data on crude oil prices and economic growth are annual time series data stretching from 1987 to 2016. The results of co-integration tests show that there is no long-term relationship between crude oil prices and economic growth. However, the estimation of the ARDL(5.0) model shows that in the short term, there is the influence of crude oil prices toward economic growth. Keywords: Crude oil price, economic growth, ARDL bound co-integration test, ARDL model JEL Classifications: C120, C320, E300, O470 DOI: https://doi.org/10.32479/ijeep.732

Modeling of the Dynamics Relationship between World Crude Oil Prices and the Stock Market in Indonesia

This study aims to examine the dynamics of the relationship between world crude oil prices and Indonesian stock market within the period of January 1st, 2004 to December 31st, 2013. The world crude oil prices referred to the price of West Texas Intermediate crude oil (WTI), whereas the composite indexes at the Indonesian Stock Exchange were used as indicators of the stock market in Indonesia. Daily data were analyzed by employing the LVAR causal model. The test results showed that there was a significant dynamical relationship between world crude oil prices and Indonesian composite index, both in the long-term and in the short-term. The dynamics of this relationship is positive, meaning that if the world crude oil price rises (falls), then the composite index also rises (falls). This finding is in the need for Indonesian government to be considered in their economic policy, as well as for investors to manage their investment portfolio. Keywords: World crude oil price; Stock price; LVAR analysis JEL Classifications: C51; C58; G12; Q41; Q4

A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia's Export

This study aims to investigate the effect of Rupiah/US dollar exchange rate on the volume of Indonesia's  export. It analyzes monthly data spanning from January 2001 to November 2015. An econometric model used to analyze the data is the difference equation model. Result of analysis found that in the long term the exchange rate of rupiah/US dollar affects export. This long-term influence is negative, in that each 1% increase (decrease) in rupiah/US dollar is always followed by 0.24%  fall (rise) in export. Furthermore, in the short term there is an effect of the exchange rate of rupiah/US dollar on export and the effect is also negative. Indonesian government needs to conduct a policy aimed at increasing industrial outputs that can boost exports. The government also needs to implement a monetary policy to ensure that the exchange rate of rupiah remains stable. Keywords: Exchange rate, export, difference equation model JEL Classifications: F140, F310, G15

The Influence of Fuel Prices and Unemployment Rate towards the Poverty Level in Indonesia

The purpose of this study is to examine the influence of fuel prices and unemployment rates toward poverty levels. The data used were yearly time series data consisting of fuel price, unemployment rate, and poverty level that span from 1998 to 2017. To test the influence of fuel price and unemployment rate toward the poverty level, the autoregressive distributed lag (ARDL) model was used. . The results of data analysis showed that in the short-term, there is a negative influence of fuel prices toward the level of poverty. Meanwhile, there is a positive influence of unemployment rate on poverty level in the long-term. In this case, every 1% increase (decrease) the unemployment rate, the poverty rate rose (down) by 33.09%. Keywords: Fuel price, unemployement rate, poverty level, and ARDL model. JEL Calassifications: C220, E310, I32, J64

The Causal Relationship between Crude Oil Price, Exchange Rate and Rice Price

This study aims to examine the causal relationship between crude oil price, IDR/EUR exchange rate, and rice price by using monthly data from January 2000 to September 2017. The result of data analysis using VAR model shows that there is no long-term relationship between crude oil price, IDR/EUR exchange rate, and the price of rice. The relationhip that happens is only in short-term one. Granger causality test result shows that the direction of relationship is from crude oil price and IDR/EUR exchange rate to rice price. The relationship between crude oil price and rice price is positive, while the relationship between IDR/EUR exchange rate and rice price is positive before the third month. However, this relationship turns into negative after the third month.    Keywords: Crude oil price, exchange rate, rice price, VAR model. JEL Classifications: C58, G150, Q13, Q430