EXTERNAL DEBT: INDONESIA IS IN A DEBT TRAP?
Countries with limited domestic funding resources, including Indonesia, urgently need external debt. External debt requires good management so that it does not become a burden or even ensnare the debtor country (debt trap). This study aims to analyze the effect of macroeconomic factors, namely budg...
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| Format: | Article |
| Language: | Indonesian |
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Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya
2025-01-01
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| Series: | Ekuitas: Jurnal Ekonomi dan Keuangan |
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| Online Access: | https://ejournal.stiesia.ac.id/ekuitas/article/view/6477 |
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| author | Nur Feriyanto Donny Aryanto Prabowo Adhitya Wardhono Ciplis Gema Qori’ah |
| author_facet | Nur Feriyanto Donny Aryanto Prabowo Adhitya Wardhono Ciplis Gema Qori’ah |
| author_sort | Nur Feriyanto |
| collection | DOAJ |
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Countries with limited domestic funding resources, including Indonesia, urgently need external debt. External debt requires good management so that it does not become a burden or even ensnare the debtor country (debt trap). This study aims to analyze the effect of macroeconomic factors, namely budget deficit, exchange rate, foreign exchange reserves, export, and the previous year's external debt, on the accumulation of external debt. It uses time series data during the period 1990 to 2021. The data analysis method in this study used Vector Autoregressive (VAR). The Impulse Response Function results of VAR analysis showed that budget deficit and foreign exchange reserves can decrease external debt accumulation. Exchange rate depreciation also drops external debt accumulation. Meanwhile, the previous period of external debt increases the accumulation of external debt in Indonesia. This result implies that the government must be able to control the stabilization of these macroeconomic variables so that external debt can be suppressed. Then, it will not become a development burden for Indonesia. In addition, the allocation of external debt must be properly directed to productive sectors so that the interest expense can be covered by return on the use of external debt.
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| format | Article |
| id | doaj-art-62021260798a497d8408b33cd95f80dc |
| institution | Kabale University |
| issn | 2548-298X 2548-5024 |
| language | Indonesian |
| publishDate | 2025-01-01 |
| publisher | Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya |
| record_format | Article |
| series | Ekuitas: Jurnal Ekonomi dan Keuangan |
| spelling | doaj-art-62021260798a497d8408b33cd95f80dc2025-01-03T07:32:32ZindSekolah Tinggi Ilmu Ekonomi Indonesia SurabayaEkuitas: Jurnal Ekonomi dan Keuangan2548-298X2548-50242025-01-018410.24034/j25485024.y2024.v8.i4.6477EXTERNAL DEBT: INDONESIA IS IN A DEBT TRAP?Nur Feriyanto0Donny Aryanto Prabowo1Adhitya Wardhono2Ciplis Gema Qori’ah3Universitas Islam Indonesia, YogyakartaUniversitas Gadjah Mada, YogyakartaUniversitas Jember, JemberUniversitas Jember, Jember Countries with limited domestic funding resources, including Indonesia, urgently need external debt. External debt requires good management so that it does not become a burden or even ensnare the debtor country (debt trap). This study aims to analyze the effect of macroeconomic factors, namely budget deficit, exchange rate, foreign exchange reserves, export, and the previous year's external debt, on the accumulation of external debt. It uses time series data during the period 1990 to 2021. The data analysis method in this study used Vector Autoregressive (VAR). The Impulse Response Function results of VAR analysis showed that budget deficit and foreign exchange reserves can decrease external debt accumulation. Exchange rate depreciation also drops external debt accumulation. Meanwhile, the previous period of external debt increases the accumulation of external debt in Indonesia. This result implies that the government must be able to control the stabilization of these macroeconomic variables so that external debt can be suppressed. Then, it will not become a development burden for Indonesia. In addition, the allocation of external debt must be properly directed to productive sectors so that the interest expense can be covered by return on the use of external debt. https://ejournal.stiesia.ac.id/ekuitas/article/view/6477External debtMacroeconomicsFiscalVAR |
| spellingShingle | Nur Feriyanto Donny Aryanto Prabowo Adhitya Wardhono Ciplis Gema Qori’ah EXTERNAL DEBT: INDONESIA IS IN A DEBT TRAP? Ekuitas: Jurnal Ekonomi dan Keuangan External debt Macroeconomics Fiscal VAR |
| title | EXTERNAL DEBT: INDONESIA IS IN A DEBT TRAP? |
| title_full | EXTERNAL DEBT: INDONESIA IS IN A DEBT TRAP? |
| title_fullStr | EXTERNAL DEBT: INDONESIA IS IN A DEBT TRAP? |
| title_full_unstemmed | EXTERNAL DEBT: INDONESIA IS IN A DEBT TRAP? |
| title_short | EXTERNAL DEBT: INDONESIA IS IN A DEBT TRAP? |
| title_sort | external debt indonesia is in a debt trap |
| topic | External debt Macroeconomics Fiscal VAR |
| url | https://ejournal.stiesia.ac.id/ekuitas/article/view/6477 |
| work_keys_str_mv | AT nurferiyanto externaldebtindonesiaisinadebttrap AT donnyaryantoprabowo externaldebtindonesiaisinadebttrap AT adhityawardhono externaldebtindonesiaisinadebttrap AT ciplisgemaqoriah externaldebtindonesiaisinadebttrap |