| Abstrak/Abstract |
CoronaVirus Disease-2019 (COVID-19) pandemic has dramatically affected
people’s lives in Indonesia, including the economic sector. Central Bureau of Statistics (BPS)
has announced that Indonesia’s inflation tends to weaken, and in July 2020, it reached -0.01%.
This change in the inflation trend was due to an increase in layoffs (PHK) and the existence
of a work scheme to become Work From Home (WFH). This study intends to find a model of
Indonesia’s inflation to the number of additional positive cases of COVID-19 infection using
panel data regression analysis with the one-way (individual-effect) fixed-effects model approach.
The data used are inflation rate data and the number of additional positive cases infected per
province in Indonesia per month, from January to July 2020. Based on this inflation model, one
can determine the relationship between the inflation rate and the number of additional positive
cases infected. The analysis using panel data regression analysis with the one-way (individual-
effect) fixed-effects model approach obtained that the increase in the number of positive cases
affected Indonesia’s inflation, where each addition of one case will reduce the inflation value by
5.14 × 10−5. |
