Journal of Contemporary Issues in Business and Government

Abstract

This research is a quantitative type of research that aims to determine the relationship
between GDP, Exchange Rate and Oil Prices on the State Budget Deficit. The variables used in this
study consisted of 3 independent variables and 1 dependent variable. The sample in this study is
Indonesia from 1988 to 2018. The analysis model uses Partial Least Square with the help of the
WarpPls 7.0 application. Partial Least Square is a statistical data analysis methodology that is at the
intersection between regression models, structural equation models, and multiple table analysis
methods. The results show that gross domestic product has a significant negat ive effect on the
APBN deficit, the exchange rate has an insignificant negative effect on the APBN deficit, and oil
prices the world has an insignificant positive effect on the state budget deficit