This article aims to discuss the difference in
elasticity to imports and the aggregate consumption
between the two countries namely Indonesia and
America with time series 1988-2017. Indonesia as a
developing country shows that changes in the inflation
rate led to a single percent change in Indonesian
imports. GDP value changes cause a percent change in
Indonesia's aggregate consumption. Whereas in
America, foreign exchange reserves, the rate of inflation
and consumption is elastic towards American imports.
The GDP value, debt interest, and imports are elastic
against American aggregate consumption during 1988-
2017. This distinction indicates that in American
developed countries more elasticity between economic
variables than Indonesia is still developing countries.
Recommended to the Government of Indonesia through
the Ministry of Trade and Bank Indonesia as a policy
determinant to maintain the stability of the rupiah
exchange rate in the international market so that the
productivity of real sector output can support
Acceleration of development and domestic economy
because Indonesia is included in one of the emerging
market countries for now that seeks to maintain the
welfare of the community.
Keywords : Import; Consumption; Elasticity.