Examining the Rupiah Exchange Rate as a Mediator Between Export-Import and Economic Growth in Indonesia During the 2017-2024 Period

Abstract

This study uses the Rupiah exchange rate as a mediating variable to examine how imports and exports affect Indonesia's economic growth. Using secondary data from 2017 to 2024, multiple linear regression and path analysis were the methodologies employed in this study. The findings demonstrated that imports had a positive but negligible impact on economic growth, whereas exports had a negative but negligible effect. Furthermore, there is no discernible impact of the rupiah exchange rate on economic growth, suggesting that exchange rate swings are not powerful enough to have a direct impact on the expansion of the national economy. Furthermore, as neither imports nor exports significantly affect the exchange rate, the path analysis's findings demonstrate that the rupiah exchange rate cannot mediate the relationship between imports and exports to economic growth. This result suggests that Indonesia's economic growth may be more significantly influenced by other variables, such as investment, monetary policy, and international economic stability. Therefore, to improve the efficiency of international commerce in fostering national economic growth, a more all-encompassing economic strategy is required.