This study aims to explore the implications of imported electrical equipment in Indonesia, analysing both short-term and long-term impacts using a quantitative approach. The research focuses on understanding how various economic factors, such as domestic production, international pricing, national income, and exchange rates, influence the country’s import dynamics in the electrical equipment sector. Employing an Error Correction Model (ECM) for regression analysis, the study utilises time-series data from 2007 to 2021 to delve into the complex interplay of these variables. The methodology involves a comprehensive analysis using the Augmented Dickey-Fuller and Phillips-Perron tests to assess the stationarity of the data. This approach ensures the robustness of the ECM, which is employed to analyse the short-term and long-term effects of the identified variables on electrical equipment imports in Indonesia. The results reveal significant relationships between these economic factors and import levels. In the short term, imports are shown to be sensitive to changes in domestic economic conditions and international market prices, while in the long term, the country’s economic growth, reflected through GDP, emerges as a significant determinant. The findings suggest that Indonesia’s electrical equipment import policies must adapt highly to domestic and international economic changes. In the short term, a responsive approach is required to manage the immediate impacts of market fluctuations. The study highlights the importance of aligning import strategies with broader economic growth and environmental sustainability goals for long-term sustainability. Policymakers are advised to focus on enhancing domestic production capabilities, reducing import dependency, and ensuring that environmental considerations are integral to import policies. This study contributes to understanding import dynamics in a developing country context, offering valuable insights for policymakers and industry stakeholders in shaping strategies for economic growth and sustainability in the electrical equipment sector. The findings underscore the need for a balanced, data-driven approach to managing imports, aligning short-term responses with long-term strategic objectives for Indonesia’s ongoing development and industrial advancement.

considering the rate of the currency channel, this study aims to analyze the effect of government foreign debt on labour demand in Indonesia. The Real Effective Exchange Rate (REER) is used to quantify the exchange rate, while estimates of the labour force participation rate characterize labour demand. this study expands upon the cobb-Douglass production function by including public debt as an integral element of the statistical model. The current study examines time series data from 1994 to 2022 and uses the Vector Error Correction Model (VECM) for estimation. in conclusion, the results suggest that an increase in government external debt would result in a decline in labour demand, especially during economic shock associated with an expansion of the government deficit. Moreover, the Real Effective Exchange Rate has a beneficial long-term impact on labour demand. enhancing the purchasing power and stimulating investment through the appreciation of the domestic currency against foreign currencies will consequently increase economic productivity.

Relying on the D-Vine copula model, this paper delves into the hedging capabilities of Brent crude oil against the exchange rate of oil-exporting and oil-importing nations. The results affirm Brent crude oil’s role as a safeguard and a refuge against the fluctuations of major currencies. Furthermore, we reaffirm that oil retains its robust hedging and safe-haven attributes during times of crisis, with currency co-movements across all countries exhibiting greater correlation than during the entire dataset. Additionally, our empirical findings highlight an unusually positive correlation between Brent crude oil and the Russian exchange rate during the Russia-Ukraine conflict, demonstrating that oil functions as a less effective hedge and a less dependable refuge for the Russian exchange rate in such geopolitical turbulence.