The Impact of Investment, Inflation, and Exchange Rates on Rubber Exports in Indonesia

Aulia Rahman Bato (), Basri Hasanuddin, Anas Iswanto Anwar and Retno Fitrianti
Additional contact information
Aulia Rahman Bato: State Islamic University of Alauddin
Basri Hasanuddin: Hasanuddin University
Anas Iswanto Anwar: Hasanuddin University
Retno Fitrianti: Hasanuddin University

A chapter in Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), 2025, pp 125-135 from Springer

Abstract: Abstract This study analyses the relationship between inflation, investment, and exchange rates on Indonesia’s rubber exports. The research adopts a quantitative approach, utilising secondary data from 2015 to 2023. The findings reveal a positive correlation between inflation and rubber exports, where rising domestic prices for goods and services lead to the depreciation of the national currency. This depreciation makes rubber exports more competitive in international markets, attracting foreign buyers. Additionally, foreign investment positively impacts rubber exports, with increased investment contributing to improvements in infrastructure, production capacity, and access to the latest technology. Research and development also play a crucial role in fostering product innovation, leading to a broader range of value-added rubber products that expand export opportunities. On the other hand, the study found that the depreciation of the Indonesian rupiah harms exports, implying that when the rupiah depreciates, the volume of exports tends to increase. This is attributed to the lower rubber prices in foreign currencies, enhancing the appeal of Indonesian rubber products in global markets. The study indicates that these economic factors are interrelated and significantly impact Indonesia’s rubber export volumes.

Keywords: Exports; Inflation; Investment; Exchange Rate (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-758-8_12

Ordering information: This item can be ordered from
http://www.springer.com/9789464637588

DOI: 10.2991/978-94-6463-758-8_12

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().