BANK LOAN INTEREST RATE ANALYSIS OF DOMESTIC INVESTMENT (DCI) IN RIAU PROVINCE

Abstract

The research was conducted in the province of Riau, starting from December 2011 to July 2012. With the aim to determine the extent to which and how the investment loan interest rates affect investment Domestic Investment (DCI) in Riau Province. This study uses secondary data and quantitative analysis of the data using the Simple Linear Regression Analysis. To examine the effect of interest rates on domestic investment in Riau Province. Statistical tests include testing the coefficient of determination R-square and t tests. Based on the results obtained by using SPSS coefficient of determination or R-square (R2) of 0.512, which means that the value of investments Domestic Investment (DCI) as the dependent variable Riau be explained by the independent variable Interest Rate Investment of 51.2 % and the remaining 48.8% is influenced by other factors that are not addressed in this analysis. Based on regression results, obtained t value of -3690 is smaller than t table with value -2.14479. Thus Ho is rejected and we can conclude that interest rates significantly affect investments Domestic Investment (DCI) in Riau Province.