Abstract:
The money supply is the amount of money in the hands of people who can be currency,
demand deposits, time deposits, savings balances and quasi money. Every change in the
money supply will affect toward economic activity in various sectors, thus the management of
the money supply should always be done with caution and consider the influences that will
happen. Base on these ideas, this research aimed to determine the effect of national income,
SBI Rate of Interest and Reserve Requirement of the Money Supply in Indonesia.
The data is used in this research is in the form of secondary data obtained from the
relevant authorities, Bank Indonesia and the Central Statistics Agency (BPS). Model analysis
of the data which is used in this research is as a multiple linear regression analysis. In this
model, the money supply is the dependent variable while the national income, the SBI Rate of
Interest as the independent variable and the Reserve Requirement as a dummy variable.
The results obtained indicate that there is a simultaneous significant effect between
National Income, SBI Rate of Interest and Reserve Requirement dummy on the money supply.
It is known from the significance of the F-test is obtained significance level of the Sig F-count
0,000≤ Sig F (α)0,05. Partially, National Income variables significantly influence the money
supply. It is known from the t test of significance obtained a significance level of t-count . Sig
t-count 0,000 ≤ Sig t (α)0,05. And Variable SBI Rate of Interest also significantly influence
the money supply. It is known from the t-test significant acquired a significance level of tcount
. Sig t-count 0,034 ≤ Sig t (α)0,05. Based on the research results were also obtained
value of R2 was 0.987. This number means that national income, the interest rate of SBI and
the Statutory Reserve effected by 98.7% toward the money supply in Indonesia, while the
rest is determined by other factors which is not included in this model.
