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MACROECONOMIC DYNAMICS AND COMMUNITY WELFARE: AN EMPIRICAL STUDY OF PURCHASING POWER IN MEDAN CITY

Jurnal Al-Ijtimaiyyah · Vol. 12 No. 1 (2026) · pp. 20–31

DOI
10.22373/al-ijtimaiyyah.v12i1.33942
ISSN
2461-0755, 2654-5217
Published
2026-06-30
Publisher
Universitas Islam Negeri Ar-Raniry Banda Aceh
Language
eng
License
creativecommons.org/licenses/by-sa/4.0

Abstract

This study analyzes the influence of key macroeconomic factors on community purchasing power as an important indicator of social and economic welfare in urban areas. Specifically, it examines the effects of Gross Regional Domestic Product (GRDP), inflation, and the Regional Minimum Wage on purchasing power in Medan City, Indonesia. Purchasing power reflects the community’s ability to meet basic and non-basic needs and plays a strategic role in sustaining social stability and improving living standards within urban society. The study employs a quantitative approach using multiple linear regression analysis based on secondary monthly data from 2019 to 2023 obtained from the Central Statistics Agency. The results show that inflation has a negative and significant effect on purchasing power, while GRDP and the Regional Minimum Wage have positive and significant effects. Simultaneously, the three variables significantly influence purchasing power, with an R-squared value of 0.691, indicating that 69.1% of the variation in purchasing power is explained by the model. These findings highlight the importance of inclusive economic growth, sustainable wage policies, and effective inflation control in strengthening community welfare. This study contributes to social and economic development discourse by providing empirical evidence to support public policies aimed at improving the purchasing power and well-being of urban communities.

Keywords

Collaboration network of the authors

40 authors · 107 co-authorship links · 13 across different organisations · showing the 40 most connected

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Universitas Nahdlatul Ulama Blitar
  • State University of Semarang
  • Hasanuddin University
  • Universitas Balikpapan
  • Universitas Airlangga
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Putut MarwotoState University of Semarang7
Ani RusilowatiState University of Semarang4
Budi AstutiAffiliation unknown4
Dwi YuliantiState University of Semarang4
Sulhadi SulhadiAffiliation unknown4
Arif WidiyatmokoState University of Semarang3
P. ArifinAffiliation unknown3
M. BarmawiAffiliation unknown3
Darwin DarwinAffiliation unknown2
Roziqin RoziqinAffiliation unknown2
Sugiyanto SugiyantoAffiliation unknown2
NUR HAMIDAffiliation unknown2
Kartono KartonoUniversitas Airlangga2
St. Budi WaluyaAffiliation unknown2
Sunyoto Eko NugrohoState University of Semarang2
Ernawaty UsmanAffiliation unknown2
Rachmawati RachmawatiAffiliation unknown2
Herman BudiyonoAffiliation unknown2
R.A. SaniAffiliation unknown2
M. BudimanAffiliation unknown2
Aqwa Naser DaulayAffiliation unknown2
Maidalena MaidalenaAffiliation unknown2
Susi DarmawaningsihUniversitas Nahdlatul Ulama Blitar1
Sulis Ni’matun NaharinUniversitas Nahdlatul Ulama Blitar1
Wiwit Wiji LestariUniversitas Nahdlatul Ulama Blitar1
Rizka Rizqi RobbyUniversitas Nahdlatul Ulama Blitar1
Rahayu Sri WaskitoningtyasUniversitas Balikpapan1
Casmudi CasmudiAffiliation unknown1
La Ode SamlanAffiliation unknown1
Visman VismanAffiliation unknown1
Sugianto SugiantoHasanuddin University1
Riswal KarammaHasanuddin University1
Chairul PaotonanAffiliation unknown1
Rita Tahir LopaAffiliation unknown1
Chairul PaotonanHasanuddin University1
Rita Tahir LopaHasanuddin University1
Della PuspitasariAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://jurnal.ar-raniry.ac.id/index.php/PMI/oai, first harvested 6 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">MACROECONOMIC DYNAMICS AND COMMUNITY WELFARE: AN EMPIRICAL STUDY OF PURCHASING POWER IN MEDAN CITY</dc:title>
	<dc:creator xml:lang="en">Basri, Hunny Lutpiah</dc:creator>
	<dc:creator xml:lang="en">Sugianto, Sugianto</dc:creator>
	<dc:creator xml:lang="en">Harahap, Muhammad Ikhsan</dc:creator>
	<dc:subject xml:lang="en">Community Welfare</dc:subject>
	<dc:subject xml:lang="en">Purchasing Power</dc:subject>
	<dc:subject xml:lang="en">Regional Economy</dc:subject>
	<dc:subject xml:lang="en">Inflation</dc:subject>
	<dc:subject xml:lang="en">Minimum Wage</dc:subject>
	<dc:description xml:lang="en">This study analyzes the influence of key macroeconomic factors on community purchasing power as an important indicator of social and economic welfare in urban areas. Specifically, it examines the effects of Gross Regional Domestic Product (GRDP), inflation, and the Regional Minimum Wage on purchasing power in Medan City, Indonesia. Purchasing power reflects the community’s ability to meet basic and non-basic needs and plays a strategic role in sustaining social stability and improving living standards within urban society. The study employs a quantitative approach using multiple linear regression analysis based on secondary monthly data from 2019 to 2023 obtained from the Central Statistics Agency. The results show that inflation has a negative and significant effect on purchasing power, while GRDP and the Regional Minimum Wage have positive and significant effects. Simultaneously, the three variables significantly influence purchasing power, with an R-squared value of 0.691, indicating that 69.1% of the variation in purchasing power is explained by the model. These findings highlight the importance of inclusive economic growth, sustainable wage policies, and effective inflation control in strengthening community welfare. This study contributes to social and economic development discourse by providing empirical evidence to support public policies aimed at improving the purchasing power and well-being of urban communities.</dc:description>
	<dc:publisher xml:lang="en">Universitas Islam Negeri Ar-Raniry Banda Aceh</dc:publisher>
	<dc:date>2026-06-30</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://jurnal.ar-raniry.ac.id/index.php/PMI/article/view/33942</dc:identifier>
	<dc:identifier>10.22373/al-ijtimaiyyah.v12i1.33942</dc:identifier>
	<dc:source xml:lang="en">Jurnal Al-Ijtimaiyyah; Vol. 12 No. 1 (2026); 20-31</dc:source>
	<dc:source>2461-0755</dc:source>
	<dc:source>2654-5217</dc:source>
	<dc:source>10.22373/al-ijtimaiyyah.v12i1</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://jurnal.ar-raniry.ac.id/index.php/PMI/article/view/33942/12517</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2026 Hunny Lutpiah Basri, Sugianto Sugianto, Muhammad Ikhsan Harahap</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by-sa/4.0</dc:rights>
</oai_dc:dc>