The Effect of Yuan Renminbi to Yen Toward Indonesia's Export to Japan 2004 : 10-2012:12

Aim of this research is to identify the effect of Yuan Renminbi to Yen toward import value of Japan from Indonesia. We use the monthly data for the period of October 2004-December 2012 in which Indonesia is under regime of President Susilo Bambang Yudhoyono. Co-integration test is performed in order to estimate the long-run relationship between import value of Japan from Indonesia and other related economy indicators, including exchange rate of Yuan Renminbi to Yen. The error correction model (ECM) of Engle-Granger, then, will be performed to analyze the short-run relationship of the variable used in this paper. According to the analysis, we found that there is no long-run relationship between both exchange rates, Yuan Renminbi and Rupiah to Yen, and import value of Japan from Indonesia. The only variable that has effect on the import value of Japan form Indonesia is export value of China to Japan