Japan's Economy and Its Impact on Indonesia's Economy

Penulis: Tatsuji Hayakawa, Yoopi Abimanyu

Japan and Indonesia has a very close economic relationship for the past several decade. There are ways to analyse this economic relationship. They are among others are from capital market, foreign exchange market and trade market. Under the hypotheses that the Indonesia’s capital market is related to the Japan’s capital market, the Indonesia’s foreign exchange market is related to the Japan’s foreign exchange market, and the Indonesia’s good market is related to the Japan’s good market, visual inspection, correlation coefficient, Johansen cointegration, and regression are run using Indonesia’s and Japan’s data. The result shows that the first and second hypotheses are rejected. Indonesia and Japan’s capital market is not related, and Indonesia and Japan’s foreign exchange market is also not related. While the third hypotheses is accepted. The Indonesia and Japan’s good market are related through export and import.

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Japan's Economy and Its Impact on Indonesia's Economy