ABSTRACT

Inflation is a problem that often affects various countries, including Indonesia. The increase and decrease in inflation need to be controlled so that it does not become a severe problem that can influence people's purchasing power and will impact the macroeconomy. Therefore, it is necessary to maintain the inflation rate by implementing monetary policy, which is expected to control the circulation of money in society. On the other hand, inflation volatility can also be influenced by macroeconomics. This study aims to analyse the influence of Foreign Direct Investment (FDI), Third Party Funds (TPF), Bank Indonesia 7 Day Repo Rates (BI7DRR), and the Rupiah Exchange Rate against the United States Dollar. The research tool was eviews10, using multiple linear regression analysis with time series data types. The data used in this assessment comes from Badan Koordinasi Penanaman Modal (BKPM), Organization for Economic Co-Operation and Development (CEIC), and Bank Indonesia (BI), with a period from 2015 Q1 to 2022 Q4. Based on the research, it was found that there are variables that simultaneously and partially influence inflation and the condition of inflation in Indonesia.