Abstract

Author:
Supriaman, Ariefanda Iqbal Perdhana, Hasanudin

Doi: 10.26480/seps.02.2024.86-91

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Controlling the banking monetary in such a way needs to be done so that the dynamic of real sector growth develops in the expected way. This study is intended to analyze the role of credit interest rate instruments, development of capital adequacy ratio (CAR), and loan-to-deposit ratio (LDR) in Indonesian economic growth in the last ten years. By using multiple linear stepwise regression analyzing method approach, a very significant role simultaneously and partially from credit interest rate instrument and development of CAR push the Indonesian economics growth in a long term were found. When the average lending rate decreases and CAR increases, economic growth in the long run will increase. Meanwhile, LDR development has no significant influence on Indonesia’s long-term economic growth.