THRESHOLD OF REAL EXCHANGE RATE AND THE PERFORMANCE OF MANUFACTURING INDUSTRY IN INDONESIA

Authors

Ndari Surjaningsih, Bank Indonesia - Indonesia
Novi Maryaningsih
Myrnawati Savitri

Document Type

Article

Abstract

This paper analyzes the presence of the threshold of the real rupiah exchange rate which influences the profitability of manufacturing industry in Indonesia. By using a non-dynamics panel data over medium and large scale companies during 2001-2009, we found the threshold of 82.4 for the real rupiah exchange rate (REER). The REER index ranging from 82.24 to 101.13 with the change value between -5.01% and 20.09% (yoy) is secure for the profitability of Indonesian manufacturing industry. This paper also conform the significant affect of Total Factor Productivity on firm’s profitability. Keywords: Profitability, Manufacturing industry, exchange rate JEL classification: F1, D21, L6

Recommended Citation

Surjaningsih, Ndari; Maryaningsih, Novi; and Savitri, Myrnawati (2014) "THRESHOLD OF REAL EXCHANGE RATE AND THE PERFORMANCE OF MANUFACTURING INDUSTRY IN INDONESIA," Bulletin of Monetary Economics and Banking: Vol. 16: No. 4, Article 6.
DOI: https://doi.org/10.21098/bemp.v16i4.25
Available at: https://bulletin.bmeb-bi.org/bmeb/vol16/iss4/6

First Page

373

Last Page

394

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

Bank Indonesia