THE EFFECT OF USD EXCHANGE RATES, INFLATION AND FOREIGN INVESTMENT AND INDONESIA FOREIGN EXCHANGE RESERVES

ABSTRACT: The purpose of this study was to analyze the direct effect of the US Dollar exchange rate,
inflation rates, foreign investments against the value of Indonesian exports and foreign exchange reserves. In
this study, the source of the data used are secondary data time series. The sample used in this study was 23
years of data contained in the 1995-2018 year. The analysis technique used is path analysis. The results showed
the US Dollar Exchange Rate positive and significant effect on Indonesian exports value. The inflation rate
should not adversely affect Indonesia’s export value. Foreign investment is not a positive effect on Indonesia’s
export value. US Dollar exchange rate and a significant positive effect on Indonesia foreign exchange reserves.
The inflation rate and a significant negative effect on Indonesia foreign exchange reserves. Foreign investment
and significant positive effect on Indonesia foreign exchange reserves. Export value of positive and significant
effect on Indonesia foreign exchange reserves. Exchange rate US dollas indirect effect of the foreign exchange
reserves through Indonesia foreign exchange reserves.
Keywords: dollar exchange rate as the inflation rate, foreign investment, exports, Indonesia foreign exchange
reserves