scholarly journals Credit Risk Determinants in Indonesia

2018 ◽  
Vol 1 (2) ◽  
pp. 106-115
Author(s):  
Amin Yusuf Efendi
Keyword(s):  
Time Series ◽  
Interest Rate ◽  
Credit Risk ◽  
Error Correction ◽  
Error Correction Model ◽  
Series Data ◽  
Short Term ◽  
Correction Model ◽  
Spurious Regression

Credit is the main business of the banking industry, therefore, in running the business, the bank is always overshadowed by the credit risk the which can be determined by the ratio of non-performing loans (NPL). The development of technology, finance digital brings the outside could impact on the financial industry both positive and negative. The purpose of this study was to analyze the interest rate, inflation, exchange rates, gross domestic product (GDP), a dummy finance digitalization policies in the long term and the short term of the non-performing loan (NPL) of conventional commercial banks in Indonesia The analytical method used in this research is-EG Error Correction Model (ECM), The Data used in this research is secondary quarterly time series data from the 2008 quarter 1-2017 4. The time series of data are not stationar Often that can cause spurious regression results, the exact models used is-EG Error Correction Model (ECM), This models may explain the behavior of short-term and long-term. The results Showed in the short-term variable interest rates significanly to non-performing loans, while in the long-term variable interest rate, exchange rate, and GDP Significantly, non-performing loans. Kredit merupakan bisnis utama dari industri perbankan, oleh karena itu dalam menjalankan bisnisnya, bank selalu dibayangi oleh risiko kredit yang dapat diketahui melalui rasio non-performing loans (NPL). Perkembangan teknologi, menghadirkan digital finance yang membawa dampak luar bisa terhadap industri keuangan baik positif dan negatif. Tujuan dari penelitian ini adalah untuk menganalisis suku bunga, inflasi, kurs, produk domestik bruto (PDB) dummy kebijakan digitalisasi keuangan dalam jangka panjang dan jangka pendek terhadap non-performing loan (NPL) bank umum konvensional di Indonesia  Metode analisis yang digunakan dalam penelitian ini adalah Error Correction Model-EG (ECM). Data yang digunakan dalam penelitian ini adalah data sekunder runtut waktu kuartalan dari 2008 kuartal 1 – 2017 kuartal 4. Data runtun waktu sering tidak stationar sehingga bisa menyebabkan hasil regresi palsu (spurious regression), Model yang tepat digunakan adalah Error Correction Model-EG (ECM), model ini dapat menjelaskan perilaku jangka pendek dan jangka panjang. Hasil penelitian menunjukkan dalam jangka pendek variabel suku bunga berpengaruh secara signifikan terhadap non performing loan, sedangkan dalam jangka panjang variabel suku bunga, kurs, dan PDB berpengaruh secara signifikan terhadap non perfoming loan.

scholarly journals INTERAKSI ASPEK PERMODALAN, RISIKO PEMBIAYAAN, DAN INDIKATOR MAKROEKONOMI DALAM MEMPENGARUHI PROFITABILITAS BPRS DI INDONESIA PERIODE 2014-2018

2020 ◽  
Vol 5 (3) ◽  
pp. 401
Author(s):  
Feri Irawan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Error Correction ◽  
Error Correction Model ◽  
Series Data ◽  
Short Term ◽  
Correction Model ◽  
Long Run ◽  
Short And Long Term

<p align="center"><strong><em>ABSTRACT</em></strong></p><p><em>This study aims to analyze the effect of capital aspects (CAR), financing risk (NPF) and macroeconomic variables including economic growth, inflation and the BI Rate on profitability (ROE) in the short and long term. By using time series data for the monthly period from 2013-2018 and the Error-Correction Model (ECM) and cointegration approach, it is found that CAR and NPF do not have a significant effect on ROE in the short and long term. Economic growth, inflation and the BI Rate in the short term do not have a significant effect on ROE, in the long run economic growth, inflation and the BI Rate have a significant effect on ROE. In the short term, economic growth, inflation and the BI Rate disturb the balance of profitability, but in the long run it returns to its equilibrium level. It is necessary to integrate the BPRS policy strategy in managing capital and risk with government policies related to economic growth and inflation.</em></p><p><em> </em></p><p align="center"><strong><em>ABSTRACT</em></strong></p><p><em>Penelitian bertujuan menganalisis pengaruh aspek permodalan (CAR), risiko pembiayaan (NPF) dan variabel makroekonomi yang meliputi pertumbuhan ekonomi, inflasi dam BI Rate  terhadap profitabilitas (ROE) dalam jangka pendek dan jangka panjang. Dengan menggunakan data time series periode bulanan dari tahun 2013-2018 dan pendekatan Error-Correction Model  (ECM) dan kointegrasi, ditemukan bahwa CAR dan NPF tidak berpengaruh secara signifikan terhadap ROE dalam jangka pendek dan jangka panjang. Pertumbuhan ekonomi, inflasi dan BI Rate dalam jangka pendek tidak berpengaruh signifikan terhadap ROE, dalam jangka panjang pertumbuhan ekonomi, inflasi dan BI Rate berpengaruh signfikan terhadap ROE. Pada jangka pendek, pertumbuhan ekonomi, inflasi dan BI Rate menggangu keseimbangan profitabilitas namun dalam jangka panjang kembali pada tingkat keseimbangannya. Diperlukan pengintegrasi strategi kebijakan BPRS dalam mengelola permodalan dan risiko dengan kebijakan pemerintah terkait dengan pertumbuhan ekonomi dan inflasi.</em><em></em></p><p align="right"> </p>

scholarly journals Pengaruh Inflasi dan Pertumbuhan Ekonomi Terhadap Nilai Tukar Rupiah dalam Jangka Pendek dan Jangka Panjang Tahun 2010-2018

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
Nur Afriyanti ◽  
Luhur Prasetiyo
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Exchange Rate ◽  
Error Correction ◽  
Error Correction Model ◽  
Series Data ◽  
Short Term ◽  
Correction Model ◽  
The Exchange Rate

Artikel ini bertujuan untuk mengetahui pengaruh inflasi dan pertumbuhan ekonomi terhadap nilai tukar Rupiah, baik jangka panjang maupun jangka pendek. Perubahan nilai tukar Rupiah terhadap mata uang Dollar Amerika Serikat dipengaruhi oleh banyak faktor. Di antara faktor yang mempengaruhi nilai tukar adalah kenaikan harga umum (inflasi) dan pertumbuhan ekonomi. Penelitian ini menggunakan metode analisis data Error Correction Model (ECM) dan teknik pemilihan sampel menggunakan sampel jenuh dari populasi yang berjumlah 36. Sampel dalam penelitian ini yaitu data time series/triwulan inflasi, pertumbuhan ekonomi dan nilai tukar dengan periode pengamatan selama 9 tahun yaitu tahun 2010-2018. Hasil penelitian menunjukkan bahwa dalam jangka panjang nilai tukar dipengaruhi oleh inflasi dan pertumbuhan ekonomi. Sedangkan dalam jangka pendek nilai tukar tidak dipengaruhi oleh variabel inflasi dan pertumbuhan ekonomi. Secara bersama-sama variabel inflasi dan pertumbuhan ekonomi berpengaruh signifikan terhadap variabel nilai tukar.The purpose of this research is to determine the effect of inflation dan economic growth on Rupiah exchange rate, both long-term and short-term. The movement of Rupiah exchange rate to US Dollar is influenced by many factors. Among the factors affecting the exchange rate are general price increases (inflation) and economic growth. This research uses Error Correction Model (ECM) for data analysis. The population in this study amounted to 36. The sample selection technique is saturated sample. The sample in this research is time series data on quarterly inflation, economic growth and the exchange rate in the period of 9 years, namely 2010-2018. The results show that in the long-term the exchange rate is influenced by inflation and economic growth. Whereas in the short-term the exchange rate is not influenced by inflation and economic growth variables. Furthermore, inflation and economic growth variables have a significant effect on the exchange rate variable.

scholarly journals The Impact of Final Demand arld Prices on Indonesia's Total - Import: Cointegration and Error Correction Model Analysis

2009 ◽  
Vol 9 (2) ◽  
pp. 109-125
Author(s):  
Isbandriyati Mutmainah
Keyword(s):  
Error Correction ◽  
Private Investment ◽  
Error Correction Model ◽  
Final Demand ◽  
Cointegration Test ◽  
Series Data ◽  
Short Term ◽  
Correction Model ◽  
The Impact

This research is aimed to investigate the influence of final demand and price to Indonesian agregate imports in the long-run and short-run. We use analytical technique cointegration test Iohansen procedures for the long-term influence, and Error Correction Model to estimate the short-term influence, by using quarterly time series data period from_1980 to 2004. From the result of cointegration test and Error Correction Model we found that in the long-term, all of final demand components and price except private investment are important I in determining Indonesian agregate imports. The government expenditure variable has the highest influence, while in the short-term all of independent variables except private consumption are important in determining Indonesian agregate imports and foreign price variable has the highest influence.

scholarly journals PENGARUH PRODUK DOMESTIK BRUTO, SUKU BUNGA RIIL, DAN PARTISIPASI ANGKATAN KERJA TERHADAP INVESTASI SWASTA DI INDONESIA (Pendekatan Error Correction Model)

2017 ◽  
Vol 3 (1) ◽  
pp. 1-16
Author(s):  
Dedy Syahputra ◽  
Abubakar Hamzah ◽  
Muhammad Nasir
Keyword(s):  
Time Series ◽  
Interest Rates ◽  
Error Correction ◽  
Labor Force ◽  
Private Investment ◽  
Error Correction Model ◽  
Short Term ◽  
Real Interest Rates ◽  
Correction Model

This study aimed to analyze the influence of the GDP, the real interest rate, the labor force, the private investment in Indonesia. The data used in this research is time-series data from 2000 to 2014. The research model uses an error correction model (ECM). The results showed in the long term, GDP, labor force and real interest rates have a statistically significant relationship good and theory with a confidence level of 95 percent. In the long-term estimate found that the labor force will greatly affect private investment and the estimated short-term real interest rates affect the amount of investment that will go to Indonesia. In coefficient explained, the labor force has a strong influence and advice foreign investment into the country. For short-term model estimation results indicate GDP and real interest rates significantly affect the labor force in private investment but no significant effect on private investment. However, both long term and short term, variable real interest rates still the basic reason for investing. In result of cointegration explain that the variable GDP, real interest rates, and the laborforce has a cointegration relation to investment in the long term. The government needs to increase investment and promote the economy and set the interest rates are low. Penelitian ini bertujuan menganalisis pengaruh PDB, tingkat bunga riil, angkatan kerja, terhadap investasi swasta di Indonesia. Data yang digunakan dalam penelitian ini adalah data time-series tahun 2000 hingga tahun 2014. Model penelitian ini menggunakan Error Corection Model (ECM). Hasil menunjukkan dalam jangka panjang, PDB, angkatan kerja dan suku bunga riil memiliki hubungan signifikan baik statistik dan teori dengan tingkat kepercayaan 95 persen. Pada estimasi jangka panjang ditemukan bahwa angkatan kerja akan sangat mempengaruhi investasi swasta dan estimasi jangka pendek, tingkat suku bunga riil mempengaruhi besarnya investasi yang akan masuk ke Indonesia. Secara koefisien menjelaskan, angkatan kerja memiliki pengaruh yang cukup kuat dan memberi masukan investasi asing ke dalam negeri. Untuk hasil estimasi model jangka pendek menunjukkan PDB dan tingkat bunga riil berpengaruh secara signifikan terhadap investasi swasta tetapi angkatan kerja tidak berpengaruh signifikan terhadap investasi swasta. Namun demikian, baik jangka panjang maupun jangka pendek, variabel tingkat suku bunga riil masih menjadi alasan dasar untuk berinvestasi. Dalam hasil kointegrasi menjelaskan bahwa variabel PDB, suku bunga riil, dan angkatan kerja memiliki hubungan kointegrasi terhadap investasi dalam jangka panjang. Pemerintah perlu meningkatkan investasi dan memajukan perekonomian serta mengatur suku bunga yang rendah.

scholarly journals SPURIOUS REGRESSION ANALYSIS ON TIME SERIES DATA FROM FACTORS AFFECTING INDONESIAN HUMAN DEVELOPMENT INDEXS IN 1990 – 2017

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Rinto Rain Barry ◽  
Innocentius Bernarto
Keyword(s):  
Time Series ◽  
Error Correction ◽  
Human Development ◽  
Time Series Data ◽  
Series Data ◽  
Correction Model ◽  
Independent Variables ◽  
Spurious Regression ◽  
Equilibrium Relationship

In a spurious regression conditions occur linear regression equations that are not stationary on the mean and variance. If the variables are not stationary, there will be cointegration, so it can be concluded that there is a long-term equilibrium relationship between the two research variables and in the short term there is a possibility of an imbalance, so to overcome it in this study using the Error Correction Model. The purpose of this study is to apply a cointegration test to see whether there is a long-term non-equilibrium relationship between the time series between the Human Development Index and life expectancy at birth, average school year for adults aged 25 years and over and gross national income per capita. The data used in this study are time series data between 1990-2017. The statistical management is carried out using Eviews 10. Based on the results obtained, it was concluded that 81.7% and it can be said that the types of independent variables included in the model are already good, because only 18.3% of the diversity of the dependent variable is influenced by the independent variables outside this research model. Keywords: spurious regression, stationary, cointegration, error correction model, equilibrium

Analisis Kekakuan dan Faktor-faktor yang Memengaruhi Tingkat Suku Bunga Perbankan di Indonesia

2013 ◽  
Vol 8 (2) ◽  
pp. 26
Author(s):  
Eko Listiyanto ◽  
Telisa Aulia Falianty
Keyword(s):  
Time Series ◽  
Interest Rate ◽  
Interest Rates ◽  
Error Correction ◽  
Time Series Data ◽  
Error Correction Model ◽  
Least Square ◽  
Capital Adequacy ◽  
Series Data ◽  
Correction Model

<p align="center"><em>ABSTRACT</em></p><p><em>The research discusses the rigidity of interest rates on deposits and loans to changes in interest rate policies in the three groups of banks in Indonesia, and the factors that influence the interest rates on deposits and loans in the banking system. Rigidity of bank interest rates were analyzed with error correction model approach (Error Correction Model / ECM) using panel data. While the factors that influence the development of the banking interest rates were analyzed with multiple linear regression approach method of Generalized Least Square (GLS) using time series data. The period of data used from July 2005-March 2010.</em></p><p><em>Error Correction Model shows the slackness of interest rates response on deposits and loans toward the policy of interest rate. The rigidity of interest rates on deposits and loans in Indonesia is relatively slow when compared to some other countries.</em></p><p><em>Regression results with GLS method proves that the banking efficiency factor, bad credit and market share significantly influence the interest rates on deposits. While the borrowing rate is influenced by the rate of inflation, capital adequacy ratio, as well as bad credit. The results of this study suggest the importance of watching bad credit factors in making monetary policy because it can affect the interest rates on deposits and lending interest rates.  </em></p><p>ABSTRAK</p><p>Penelitian ini membahas kekakuan suku bunga deposito dan pinjaman untuk perubahan kebijakan suku bunga dalam tiga kelompok bank di Indonesia, dan faktor-faktor yang mempengaruhi suku bunga deposito dan pinjaman dalam sistem perbankan. Kekakuan suku bunga perbankan dianalisis dengan pendekatan error correction model (Error Correction Model / ECM) menggunakan data panel. Sedangkan faktor-faktor yang mempengaruhi perkembangan suku bunga perbankan dianalisis dengan metode pendekatan regresi linier berganda dari Generalized Least Square (GLS) dengan menggunakan data time series. Periode data yang digunakan dari Juli 2005-Maret 2010.</p><p>Error Correction Model menunjukkan kelambanan dari suku bunga respon deposito dan pinjaman terhadap kebijakan tingkat suku bunga. Kekakuan suku bunga deposito dan pinjaman di Indonesia relatif lambat jika dibandingkan dengan beberapa negara lain.</p><p>Hasil regresi dengan metode GLS membuktikan bahwa faktor efisiensi perbankan, kredit macet dan pangsa pasar secara signifikan mempengaruhi suku bunga deposito. Sementara tingkat pinjaman dipengaruhi oleh tingkat inflasi, rasio kecukupan modal, serta kredit macet. Hasil penelitian ini menunjukkan pentingnya menonton faktor kredit macet dalam membuat kebijakan moneter karena dapat mempengaruhi suku bunga deposito dan suku bunga kredit.</p>

scholarly journals Model Koreksi Kesalahan pada Data Runtun Waktu Indeks Harga Konsumen Kota-kota di Papua

d'CARTESIAN ◽  
2014 ◽  
Vol 3 (1) ◽  
pp. 81
Author(s):  
Mitha Febby R. Donggori ◽  
Adi Setiawan ◽  
Hanna Arini Parhusip
Keyword(s):  
Error Correction ◽  
Price Index ◽  
Bootstrap Method ◽  
Consumer Price Index ◽  
Error Correction Model ◽  
Series Data ◽  
Short Term ◽  
Correction Model ◽  
The Bootstrap Method

Abstract The Consumer Price Index is used as a measure of inflation. Consumer Price Index data is time series data are often not stationary, causing decision-making related to the data becomes invalid. Consumer Price Index has a different rate of change in each region, as well as for the city of Jayapura, Sorong and Manokwari in Papua. In this paper, Error Correction Model is used to correct short-term imbalances and establish a long term relationship models Consumer Price Index cities - cities in Papua. We use time period : January 2009 to May 2013. To test stationarity  of the data, we use Phillips - Perron unit root test. Engle - Granger cointegration test is performed to determine whether there is a long-term relationship among cities in Papua. Furthermore, the model established by using the Error Correction Method by Domowitz - Elbadawi to correct short- term imbalances and establish long-term relationships model. The obtained Error Correction Models were compared to the results obtained with the bootstrap method . . Keywords : consumer price index, stationarity test, co integration test, error correction model, the bootstrap method Abstrak Indeks Harga Konsumen digunakan sebagai tolok ukur inflasi. Data Indeks Harga Konsumen merupakan data runtun waktu yang seringkali tidak stasioner sehingga menyebabkan pengambilan keputusan yang berkaitan dengan data menjadi tidak valid. Indeks Harga Konsumen memiliki tingkat perubahan yang berbeda di setiap daerah, begitu juga untuk kota Jayapura, Sorong dan Manokwari di Papua. Model koreksi kesalahan digunakan untuk mengoreksi ketidakseimbangan jangka pendek dan membentuk model hubungan jangka panjang Indeks Harga Konsumen kota – kota di Papua pada makalah ini. Periode waktu yang diamati adalah bulan Januari 2009 sampai dengan bulan Mei 2013. Uji stasioneritas data dengan uji akar unit Phillips-Perron, uji kointegrasi Engle-Granger yang dilakukan untuk mengetahui ada tidaknya hubungan jangka panjang di antara kota – kota tersebut. Lebih lanjut, dibentuk model koreksi kesalahan dengan metode Domowitz-Elbadawi untuk mengoreksi ketidakseimbangan jangka pendek dan membentuk model hubungan jangka panjang. Model koreksi kesalahan yang diperoleh dibandingkan dengan hasil yang diperoleh dengan metode bootstrap.   Kata kunci: indeks harga konsumen, uji stasioneritas, uji kointegrasi, model koreksi kesalahan, metode bootstrap

scholarly journals PENGARUH KUOTA EKSPOR TERHADAP HARGA KARET DOMESTIK INDONESIA

2021 ◽  
Vol 15 (2) ◽  
pp. 257-276
Author(s):  
Alfi Nurdina ◽  
Harmini ◽  
Amzul Rifin
Keyword(s):  
Time Series ◽  
Natural Rubber ◽  
Error Correction ◽  
Error Correction Model ◽  
Series Data ◽  
Short Term ◽  
Correction Model ◽  
Previous Period ◽  
Farm Level ◽  
Export Restriction

Abstrak Agreed Export Tonnage Scheme merupakan kebijakan pembatasan kuota ekspor karet alam oleh Indonesia, Malaysia dan Thailand. Kebijakan ini diduga memengaruhi harga karet alam di tingkat petani. Penelitian ini bertujuan untuk menganalisis pengaruh kebijakan kuota ekspor terhadap harga karet alam domestik Indonesia di tingkat petani. Penelitian menggunakan data time series bulanan dari Januari 2013 sampai Desember 2019 menggunakan Error Correction Model. Dalam jangka panjang, harga karet alam pada periode sebelumnya, nilai tukar, konsumsi, produksi dan harga karet alam dunia signifikan. Sementara itu, dalam jangka pendek, harga karet alam pada periode sebelumnya, nilai tukar, dan harga karet alam dunia juga signifikan. Variabel total ekspor dan dummy kebijakan tidak signifikan baik dalam jangka panjang maupun jangka pendek. Hal ini diduga karena harga karet alam tidak lagi bergantung pada faktor fundamental tetapi disebabkan oleh faktor eksternal lainnya. Perbaikan diperlukan, termasuk desain kebijakan yang komprehensif, implementasi dan evaluasi teknis yang jelas, serta kolaborasi tambahan dengan produsen karet alam lainnya. Selain itu, sejalan dengan kebijakan pembatasan ekspor, Indonesia perlu mendorong pertumbuhan industri pengolahan karet alam menjadi produk hilir. Kata Kunci: ECM, Karet Alam, Harga Domestik, AETS   Abstract Agreed Export Tonnage Scheme is a policy of limiting natural rubber export quotas by Indonesia, Malaysia, and Thailand. This policy is suspected to affect the price of natural rubber at the farm level. This study aims to analyze the effect of the export quota policy on Indonesia's domestic natural rubber prices at the farm level. The study uses monthly time series data from January 2013 to December 2019 used Error Correction Model. In the long term, natural rubber prices in the previous period, exchange rate, consumption, production, and world natural rubber prices are significant. Meanwhile, in the short term, natural rubber prices in the previous period, exchange rates, and world price natural rubber were significant. The variable total exports and the policy dummy are not significant both in the long and short term. This is presumably because natural rubber prices no longer depend on fundamental factors but are caused by other external factors. Improvements are needed, including comprehensive policy design, clear technical implementation, and evaluation, as well as additional collaboration with other natural rubber producers. In addition, in line with the export restriction policy, Indonesia needs to encourage the growth of the natural rubber processing industry into downstream products Keywords: ECM, Natural Rubber, Domestic Price, AETS JEL Classification: Q17, Q18, Q21

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI KONSUMSI DI INDONESIA MENGGUNAKAN ERROR CORRECTION MODEL (ECM) PERIODE TAHUN 1994.1–2005.4

Media Ekonomi ◽  
2017 ◽  
Vol 19 (1) ◽  
pp. 3
Author(s):  
Firdayetti SE, MSi ◽  
Michel Toni Adrianto
Keyword(s):  
Interest Rate ◽  
Error Correction ◽  
Unit Root ◽  
National Income ◽  
Error Correction Model ◽  
Short Term ◽  
Correction Model ◽  
Integration Test ◽  
The Interest Rate

<p>The aim of the implementation of this research was to know whether the national income, the interest rate of the fixed deposit, and the interest rate of credit had the influence that was significant or not towards consumption in Indonesia, and whether being gotten by long-term and short relations towards consumption. The methodology that was utilised in this research was the Error Correction Model method (ECM) that from the OLS method, with before carried out steps as follows, that is the test, the integration test and the test of the co-integration approach of the unit root. And the data that was used in this research was the secondary data in a kwartalan manner in the period 1994:1 up to 2005:4. Was based on results of the research that was carried out, then could be concluded that results of the test of the unit root, showed all variable was not yet stationary and just was stationary in the level test of the integration. While results of the co-integration test showed the stationary consumption model so as to be able to be carried out by the test of ECM. And the results of the Error Correction Model test (ECM) showed that in the long term the national income variable had the influence that was significant towards consumption. The interest rate of the Fixed Deposit in the long term and short-term did not have the influence on consumption. The interest rate of Credit in the long term and short-term also did not have the influence that was significant towards consumption.</p><p>Keywords :Real Consumption, Real GDP, Deposit Interest Rate, Credit Interest </p>

scholarly journals Non Cash Payment and Demand for Real Money in Indonesia

2019 ◽  
Vol 22 (1) ◽  
Author(s):  
Wasiaturrahma Wasiaturrahma ◽  
Yuliana Tri Wahyuningtyas ◽  
Shochrul Rohmatul Ajija
Keyword(s):  
Error Correction ◽  
Credit Card ◽  
Error Correction Model ◽  
Short Term ◽  
Correction Model ◽  
Real Money ◽  
On Demand ◽  
Cash Payment ◽  
The Impact

The study analyses the impact of non-cash payment on demand for real money in Indonesia from 2010 to 2015. Utilizing the Error Correction Model (ECM), the results reveal that the use of both debit and credit card influence the demand for real money in the long term. Moreover, debit card also significantly affects the demand for real money in the short term, while the use of credit card does not have the implication.

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