The Effect of Non-Cash Payments, BI Rate, and Money Supply on Economic Growth in Indonesia

Abstract

This study aims to analyze the effect of non-cash payments, the BI Rate, and narrow money supply (M1) on economic growth in Indonesia. Utilizing a quantitative approach with quarterly time-series secondary data from 2014 to 2025 (48 observations), the analysis was conducted using Multiple Linear Regression (Ghozali, 2021; Wooldridge, 2021). The results indicate that partially, non-cash payments and the BI Rate have a negative and significant effect on economic growth, whereas M1 money supply has a positive and significant effect. Simultaneously, all three independent variables significantly affect economic growth, with a coefficient of determination (R2) of 61.32%. This study highlights the importance of harmonizing monetary policy and integrating the digital payment ecosystem to optimally stimulate the real sector (Bank Indonesia, 2024).