Analysis of Factors Affecting Consumption Credit in North Sumatra

Oct 13, 2025 by wbrum.org 29 views

Analysis of Factors Affecting Consumption Credit in North Sumatra

Consumption credit is a loan provided to finance consumption needs, allowing individuals to enjoy goods and services before they are able to pay for them, thereby increasing living standards. This type of loan can be used for various purposes, such as car purchases, household appliances, furniture, medical services, holidays, and so forth. With the increase in income, consumption loans, especially those provided by commercial banks, have experienced significant growth for years.

Understanding the Factors that Influence Consumption Credit Growth

Many factors affect consumption credit growth, and this study aims to analyze the effect of inflation and gross regional domestic product (GRDP) per capita on consumption loans provided by commercial banks in North Sumatra. Both of these variables are chosen because they reflect the economic conditions in North Sumatra in general. Understanding the factors that influence consumption credit growth is crucial in developing strategies to encourage its growth.

Research Methods Used in the Study

This study uses secondary data obtained from the monthly and annual reports of Bank Indonesia (BI) and the Central Statistics Agency (BPS). The data analyzed included a period of 11 years, from 1993 to 2003. The model used to analyze data is multiple regression with the Ordinary Least Square (OLS) method. This method is widely used in econometric analysis to estimate the relationship between variables.

Research Results: The Effect of Inflation and GRDP per Capita on Consumption Credit

The results of the study showed that:

Inflation has a Negative Effect on Consumption Credit

This means that the higher the inflation, the lower the demand for consumption loans. This may be due to inflation making consumers more careful in spending money, and tend to postpone the purchase of goods and services. Inflation can also lead to a decrease in the purchasing power of consumers, making them less likely to take out consumption loans.

GRDP per Capita has a Positive Influence on Consumption Loans

This means that the higher the GRDP per capita, the higher the demand for consumption loans. This shows that people with higher income tend to have a greater ability and desire to access consumption loans. An increase in income per capita can lead to an increase in consumption credit growth, as individuals are more likely to take out loans to finance their consumption needs.

Significance Test: The Effect of Inflation and GRDP per Capita on Consumption Credit

The partial significance test shows that per capita GRDP has a significant influence on consumption loans at a 95% confidence level, while inflation does not have a significant effect on the same level of trust. The overall significance test shows that inflation and GRDP per capita collectively have a significant effect on consumption loans at a 95% confidence level. This means that both variables have a significant impact on consumption credit growth.

Conclusion: The Key to Encouraging Consumption Credit Growth in North Sumatra

This study shows that GRDP per capita is the most influential factor on consumption loans in North Sumatra. Although inflation has a negative influence, the effect is not significant. This means that an increase in income per capita is the key to encouraging consumption credit growth in North Sumatra. By increasing income per capita, individuals are more likely to take out consumption loans, leading to an increase in consumption credit growth.

Recommendation: Strategies to Increase Per Capita Income and Encourage Consumption Credit Growth

Development of strategies to increase per capita income in North Sumatra, such as encouraging investment and development of the industrial sector, is very important to encourage consumption credit growth. In addition, stable and directed monetary and fiscal policies can help keep inflation under control, so that it does not hamper consumption credit growth. By implementing these strategies, the government can encourage consumption credit growth, leading to an increase in living standards and economic development in North Sumatra.

The Importance of Understanding the Factors that Influence Consumption Credit Growth

Understanding the factors that influence consumption credit growth is crucial in developing strategies to encourage its growth. By analyzing the effect of inflation and GRDP per capita on consumption credit, this study provides valuable insights into the factors that influence consumption credit growth. This knowledge can be used by policymakers and financial institutions to develop strategies to encourage consumption credit growth, leading to an increase in living standards and economic development.

The Limitations of the Study

This study has several limitations. The data used in the study is secondary data obtained from the monthly and annual reports of Bank Indonesia (BI) and the Central Statistics Agency (BPS). The data analyzed included a period of 11 years, from 1993 to 2003. The model used to analyze data is multiple regression with the Ordinary Least Square (OLS) method. This method is widely used in econometric analysis to estimate the relationship between variables. However, the study did not control for other factors that may influence consumption credit growth, such as interest rates and credit availability.

Future Research Directions

Future research can build on the findings of this study by analyzing the effect of other factors on consumption credit growth. For example, researchers can analyze the effect of interest rates and credit availability on consumption credit growth. Additionally, researchers can analyze the effect of other variables, such as demographic changes and technological advancements, on consumption credit growth. By analyzing the effect of these variables, researchers can provide a more comprehensive understanding of the factors that influence consumption credit growth.

Conclusion

In conclusion, this study provides valuable insights into the factors that influence consumption credit growth in North Sumatra. The study shows that GRDP per capita is the most influential factor on consumption loans in North Sumatra, while inflation has a negative influence. The study also shows that an increase in income per capita is the key to encouraging consumption credit growth in North Sumatra. By understanding the factors that influence consumption credit growth, policymakers and financial institutions can develop strategies to encourage consumption credit growth, leading to an increase in living standards and economic development.
Frequently Asked Questions: Analysis of Factors Affecting Consumption Credit in North Sumatra

Q: What is consumption credit, and how does it affect the economy?

A: Consumption credit is a loan provided to finance consumption needs, allowing individuals to enjoy goods and services before they are able to pay for them. It can have a significant impact on the economy, as it can increase living standards and stimulate economic growth.

Q: What are the factors that influence consumption credit growth?

A: The study analyzed the effect of inflation and gross regional domestic product (GRDP) per capita on consumption loans provided by commercial banks in North Sumatra. Both of these variables are chosen because they reflect the economic conditions in North Sumatra in general.

Q: How does inflation affect consumption credit?

A: The study found that inflation has a negative effect on consumption credit. This means that the higher the inflation, the lower the demand for consumption loans. This may be due to inflation making consumers more careful in spending money, and tend to postpone the purchase of goods and services.

Q: How does GRDP per capita affect consumption credit?

A: The study found that GRDP per capita has a positive influence on consumption loans. This means that the higher the GRDP per capita, the higher the demand for consumption loans. This shows that people with higher income tend to have a greater ability and desire to access consumption loans.

Q: What is the significance of the study's findings?

A: The study's findings are significant because they provide valuable insights into the factors that influence consumption credit growth in North Sumatra. The study shows that GRDP per capita is the most influential factor on consumption loans in North Sumatra, while inflation has a negative influence. This means that an increase in income per capita is the key to encouraging consumption credit growth in North Sumatra.

Q: What are the implications of the study's findings for policymakers and financial institutions?

A: The study's findings have important implications for policymakers and financial institutions. They can use the study's findings to develop strategies to encourage consumption credit growth, leading to an increase in living standards and economic development. For example, they can develop policies to increase income per capita, such as encouraging investment and development of the industrial sector.

Q: What are the limitations of the study?

A: The study has several limitations. The data used in the study is secondary data obtained from the monthly and annual reports of Bank Indonesia (BI) and the Central Statistics Agency (BPS). The data analyzed included a period of 11 years, from 1993 to 2003. The model used to analyze data is multiple regression with the Ordinary Least Square (OLS) method. This method is widely used in econometric analysis to estimate the relationship between variables. However, the study did not control for other factors that may influence consumption credit growth, such as interest rates and credit availability.

Q: What are the future research directions?

A: Future research can build on the findings of this study by analyzing the effect of other factors on consumption credit growth. For example, researchers can analyze the effect of interest rates and credit availability on consumption credit growth. Additionally, researchers can analyze the effect of other variables, such as demographic changes and technological advancements, on consumption credit growth. By analyzing the effect of these variables, researchers can provide a more comprehensive understanding of the factors that influence consumption credit growth.

Q: What are the practical implications of the study's findings?

A: The study's findings have practical implications for policymakers and financial institutions. They can use the study's findings to develop strategies to encourage consumption credit growth, leading to an increase in living standards and economic development. For example, they can develop policies to increase income per capita, such as encouraging investment and development of the industrial sector. They can also develop policies to keep inflation under control, such as stable and directed monetary and fiscal policies.

Q: What are the policy recommendations based on the study's findings?

A: The study's findings suggest that policymakers and financial institutions should develop strategies to increase income per capita, such as encouraging investment and development of the industrial sector. They should also develop policies to keep inflation under control, such as stable and directed monetary and fiscal policies. Additionally, they should develop policies to increase access to credit, such as reducing interest rates and increasing credit availability.