The Effect of Free Trade and The Economic Globalization toward Rupiah’s Stabilization

Abstract

Economic globalization is one of the international agendas that almost all countries cannot avoid. The movement of economic globalization creates a free trade between countries so that the free trade system is in high demand by several countries in the world. The purpose of this study was to find out how the influence of the movement of economic globalization and growing free trade on the stability of the rupiah exchange rate in Indonesia in 2017. The data used was obtained from secondary data taken from the Indonesian Economic Report, Central Statistics Agency, and Quarterly reports OJK IV-2017. Meanwhile, the data collected is obtained through some documentation. According to the results of research and economic reports by Bank Indonesia, the rupiah exchange rate has stabilized throughout 2017, and this is indicated by the Indonesian payments that recorded a surplus.