THE IMPACT OF COVID-19 PANDEMIC ON ELECTRONIC MONEY TRANSACTIONS: A STUDY CASE IN INDONESIA

• Main Author: Vivi S, Carmelita
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57217
• Institution: Institut Teknologi Bandung

The rapid technological development has influenced Indonesia’s payment system. Due to the pandemic, people tend to seek cashless payment method to limit physical contact. By using monthly time-series data from Bank Indonesia and Yahoo finance website during 2015 – 2020, this study employs Paired Samples and Ordinary Least Square (OLS) regression methods to determine the impact of Covid-19 pandemic on E-Money transactions in Indonesia. This study uses E-Money transactions which consist of volume (Y1) and nominal value (Y2) of E-Money as dependent variables. Covid-19 (X1) as a dummy variable. Inflation Rate (X2) and Stock Market (X3) are included as control variables. The result shows that there is a significant difference in volume and nominal of E-Money transactions before and during the implementation of PSBB in Indonesia. Furthermore, Covid-19 correlates positively with nominal value of E-Money. Inflation correlates negatively with E-Money while stock market does not have any contribution to E-Money