Analysis of Factors Affecting Indonesia’s Non-Oil and Gas Export to China

ABSRACT: The research objectives to be achieved to analyze the effect of economic variables impact on value Indonesia’s non-oil and gas exports in China. The effect GDP Real of China country, exchange rate, inflation of the destination country, the interest rate of China and Foreign direct invesment by using lag on the Value of Indonesia’s non-oil and gas exports in China. The data used in this research is secondary data, from 2007 Quarter 1 – 2018 Quarter, Thisresearch was conducted using the Autoregressive Distributed Lag (ARDL) Method. The results of the analysis show that variable GDP Real of China, China’s inflation and China’s FDI in Indonesia at lag 4 had a positive and significant effect on indonesia non migas exports in China at the long term. While exchange rate had a negative and significant effect. however, in the short term that GDP Real of China country, exchange rate, interest rate of China Country, and FDI had significant effect on indonesia non migas exports in China.
KEYWORDS: Indonesia’s non-oil and gas exports in China, China’s GDP Real, exchange rates, China’s
inflation, China’s interest rates and FDI flows.