THE EFFECTS OF BUDGET DEFICIT AND INDONESIA EXTERNAL DEBT ON ECONOMIC GROWTH IN INDONESIA FROM 2004 TO 2022

Abstract

As a developing country, Indonesia is still experiencing an upward decline in economic growth every year. These conditions can be caused by various influences. The study aims to assess the impact of budget deficits and external debt on economic growth in Indonesia between 2004 and 2022. The double linear regression method is implemented using the EViews 12 application and utilizes secondary data. The findings show that both independent variables, budget deficits and external debt, have a significant influence on the dependent variable, economic growth. The results provide an important contribution to understanding the dynamics of fiscal and external debt policies as well as their implications for the health of the country's economy. The use of EViews 12 and secondary data strengthens the reliability of the research methodology. The research findings not only contribute to academic literature on Indonesia's economy, but also provide practical implications for policymakers aimed at managing the complexity of fiscal management and debt sustainability. Overall, the study provides an in-depth understanding of the complex relationship between budgetary factors and economic growth, as well as the basis for future economic policy decisions in Indonesia