Daftar Isi:
  • This study aims to analyze the factors that affect foreign exchange reserves in Indonesia. The study focused on research variables using the monetary approach in viewing changes in foreign exchange reserves in the period 2000.1-2016.4. As for the monetary approach the independent variables used are the exchange rate, interest rate, the amount of money and domestic credit. Method of analysis used in this research is multiple linear regression and Partial Adjustment Model (PAM) with the aim to see the influence of long-term and short-term independent variable to dependent variable. The results of this study are simultaneously variable exchange rates, interest rates, the amount of money circulation and domestic credit affect Indonesia's foreign exchange reserves. While partially for exchange rate variables significantly negatively affect Indonesia's short-term and long-term foreign reserves, the interest rate is not significant to Indonesia's long-term and long-term foreign exchange reserves, the money supply has a significant positive effect on Indonesia's long-term and long-term foreign exchange outlook In short, domestic credit significantly affects Indonesia's long-term and short-term foreign exchange outlook.