E-money Effect of Inflation in Indonesia

Abstract

Technological advances have contributed to various fields including the economy that creates electronic money (e-money). The purpose of this study was to determine the effect of the variable Amount of Money Supply (JUB), money, and interest rates on inflation in Indonesia. The research approach in this study focuses on quantitative analysis using the regression method. The data used is secondary data obtained from Bank Indonesia. The population in this study is inflation, JUB, e-money, and interest rates while the samples used are inflation, JUB, transactions in the amount of electronic money in circulation, and the BI Rate in 2015M1-2020M12. The results of this study indicate that simultaneously the independent variables show that the three variables do not affect the dependent variable, namely inflation in Indonesia as seen from the probability value of F-statistics is greater than the level of significance (α). Partially, the estimation results obtained the following results: The money supply (JUB) has a positive and insignificant effect on inflation in Indonesia. The growth of E- money has a negative but not significant effect on inflation in Indonesia. The Indonesian interest rate (BI Rate) has a positive but not significant effect on inflation in Indonesia. In addition, the test using the classical assumption test shows that the diagnostic test for normality, multicollinearity and heteroscedasticity shows that in the classical assumption test, the result is that it passes the test. Meanwhile, in the autocorrelation diagnostic test, it was declared that it did not pass the test.