Analysis of the Effect of Macroeconomic Variables on Demand for Investment Credit at Commercial Banks in Indonesia

Airil Furqan () and Sri Ulfa Sentosa
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Airil Furqan: Universitas Negeri Padang
Sri Ulfa Sentosa: Universitas Negeri Padang

A chapter in Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-10 2022), 2025, pp 277-286 from Springer

Abstract: Abstract The purpose of this research is to identify and assess both the long- and short-term effects of macroeconomic factors on the demand for investment loans at Indonesian commercial banks. The Error Correction Model (ECM) was employed to analyze the long-term and short-term relationships between the independent and dependent variables. The data utilized ranges from 2009 to 2019. According to the study’s findings, export factors, credit interest rates, and third-party funds have little effect on investment credit demand in Indonesia in the near run. Meanwhile, inflation and economic growth have a substantial short-term impact on investment credit demand. Variable exports, inflation, economic growth, and third-party funds have no long-term impact; nevertheless, lending rates have a long-term impact on demand for investment credit at Indonesian commercial banks.

Keywords: ECM; exports; imports; investment credit interest rates; inflation; economic growth; and third-party funds (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-839-4_24

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DOI: 10.2991/978-94-6463-839-4_24

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