The Impact Of Inflation, US Dollar Exchange Rate And Land Transportation Freight Towards Non-Oil And Natural Gas Export To America, Japan, Australia And England Through Surabaya Port In The Year Of 2015-2017

Indonesia is one of the countries which frequently administer both export and import activities with many countries in the world. Export activities done by Indonesia are influenced by non-oil and natural gas export. This research analyses the impact of inflation, US Dollar exchange rate, and land transportation freight towards non-oil and natural gas export activities to America, Japan, Australia, and England through Surabaya Port in the year of 2015 to 2017. Furthermore, this research uses quantitative method and the data collected are gathered from secondary. The data analysis used in this research is multiple linear regressions. The result of this research shows that all independent variables which are inflation (X1), US Dollar exchange rate (X2), and land transportation freight (X3) bring non-significant impact towards non-oil and natural gas export to four countries mentioned before. However, in the non-oil and natural gas export activities to Australia, the US Dollar exchange rate variable (X2) brings significant impact. Meanwhile, land transportation freight variable (X3) is significant towards the export activities to England.


INTRODUCTION
There is no country in this world which is able to fulfill its citizens' needs both in general and industrial sectors which cover factory machinery, spare parts, raw and supporting materials, skilled laborswho have to be recruited from other countries. There is also no country in this world which has domestic marketthat is able to absorb all kinds of production output in agriculture, mining, industry, and fishery sectors. Thus, the over production on those sectors have to be exported to other countries. This export activity is performed to maintain the output continuity and productivity from those sectors. Besides, foreign market can be considered to have wider potency and better price compared to domestic market. In addition, this export transaction is able to encourage and support domestic production to improve the product quality continually to be able to compete in international market.
There are many countries which rely on their foreign exchange which they get from the export activities. This foreign exchange is used to fund their import activities and pay positive and private debts, as well as government debt towards creditors abroad. Export commodity can be divided into two big groups. The first group is oil and natural gas export which covers raw and ready-to-use oil, including LPG commodity while the second group which is non-oil and natural gas covers 1) industrial and manufactured products: textile, television, vehicles, medicine, furniture, 2) fishery products:crabs, shrimps, lobsters, milkfish, goldfish, nile tilapia, iridescent shark, 3) agriculture products: rice, corn, wheat, soybean, ricebrand, and 4) mining products:coal, gold, bauxite, iron ore, tin ore, and many more.
In Indonesia, those export products are one of sources which fill Indonesia's foreign exchange reserve, while the other sources are loans or debts from other countries or international monetary sources such as IBRD (International Bank for Reconstruction and Development), IMF (International Monetary Fund), and also foreign investment. It also includes foreign credits and securities which are planted overseas (stock and debenture) which have been bought from foreign companies.
Sand export commodity is also highly taxed since sand cannot be reproduced except 1) sand from rivers which depends on natural gift and river stream, 2) sand from mountain which is brought by cold lava from erupted volcanoes; meanwhile, on the other hand, this sand is needed by domestic consumers for physical development. The other "arranged" export commodities are products from coffee plantation, pult industry, diamond mine, and manufactures. Export monitored goods are goods which are also needed domestically. The monitoring is performed to maintain domestic trading and consumption stability and nature conservation, and to fulfill and support industrial development domestically. On the other hand, some goods are prohibited to be exported to maintain Indonesia nature conservation or the goods have not fulfilled international quality standard and to secure domestic materials need for small industries, small scale craftsmen, and those goods have high cultural values. Free exported goods are goods needed for product and market diversification, and the export activity can be done by fulfilling general requirement as exporters.

LITERATURE REVIEW Inflation
Definitively, inflation is a situation or condition in which the price of goods and services has a tendency to increase continually. Tthe price increase of some goods such as eggs, wheat flour, sugar, and butter approaching Christians' holidays, Christmas, or Moslems holidays, Eid Mubarak, and the end of the year between December to January. However, it is not inflation since the price is only temporary increased and after those days the market demand will decrease. Specifically, the corruption level in almost every aspect in Indonesia can be considered high and difficult to be eradicated. This kind of illegal charges causes the increase of production cost which also causes the increase of goods and services price. The government's policy in increasing oil and gas price (BBM) has also caused the increase of variable cost from industry sector both producers and factories.

Exchange Rate
Exchange rate is the value of a foreign currency compared to domestic currency (Simorangkir, 2004). There are two conditions regarding a country's exchange rate. The first is depreciation in which Indonesian Rupiah (IDR) exchange rate becomes stronger compared to foreign currency and appreciation if the IDR exchange rate becomes weaker. There are many government policies to control its exchange rate. It is caused by the fact that it can influence any activity in the country including economy activity. Exchange rate influences purchasing and sales upon certain products both goods and services in a country.
Exchange rate also influences export and import activities. If a country's currency exchange rate is weaker than the producer's country, the import expense is greater and society purchasing ability will also decrease. It will also affect the country's economy activities nationally.
There are two kinds of policy in dealing with the country's currency exchange, revaluation and devaluation. Revaluation is a policy which is made by the government to increase its currency towards foreign exchange rate. Devaluation is government's policy to decrease its currency towards foreign exchange rate. The increase and decrease of a currency exchange rate are influenced by many demand and offer factors.

Land Transportation Freight
According to Tjakranegara (1995:15), the reason why there are many transportation companies is because every capable person is able to establish a transportation company. The first capital in land transportation business is not too big (a colt diesel truck costs IDR 235.000.000,-)if it is compared to water transportation (a new transport ship costs IDR 250 billion per unit). Not every person is able to establish water-transportation company.A ship costs hundreds of billion and it is called as free entryin land-transportation companies. The difference occurs between land and ocean transportation companies can be considered normal. Each company can be established individually as private business.The capital needed for other close beach/ocean, air, and train transportation companies can be considered huge. This problem is understandable.

Hypothesis
H1: Inflation level's significant impact towards non-oil & natural gas export H1.1: Inflation level's significant impact towards non-oil & natural gas exportto America H1.2: Inflation level's significant impact towards non-oil & natural gas export to Japan H1.3: Inflation level's significant impact towards non-oil & natural gas exportto Australia H1.4: Inflation level's significant impact towards non-oil & natural gas export to England H2: US Dollar exchange rate's significant impact towards consumption materials import H2.1: US Dollar exchange rate's significant impact towards non-oil & natural gas export to America H2.2: US Dollar exchange rate's significant impact towards non-oil & natural gas export to Japan H2.3: US Dollar exchange rate's significant impact towards non-oil & natural gas export to Australia H2.4: US Dollar exchange rate's significant impact towards non-oil & natural gas export to England H3: Land Transportation Freight cost's significant impact towards non-oil & natural gas export H3.1: Land Transportation Freight cost's significant impact towards non-oil & natural gas export to America H3.2: Land Transportation Freight cost's significant impact towards non-oil & natural gas export to Japan H3.3: Land Transportation Freight cost's significant impact towards non-oil & natural gas export to Australia H3.4: Land Transportation Freight cost's significant impact towards non-oil & natural gas export to England H4: Difference in non-oil & natural gas export to America, Japan, Australia, and England

RESEARCH METHOD Research type
(cause) and dependent variable (effect). This research is quantitative research which uses numbers and statistics as the data (Sugiyono, 2014).

Data Collection Technique
The data collected in this research is take from secondary source which is library research and documentation. Library research is an analysis technique to gather data from notes, literature, and other relevant sources and the documentation procedure is done by browsing and documenting the data and every information related to the study object.

Dependent Variable
The dependent variable used in this research is non-oil & natural gas export (Y). this variable is measured using non-oil & natural gas export data from America, Japan, Austraila and England from 2015 to 2017.

Independent Variable
1. Inflation Inflation is the process of continual price increase. In this research, the data is taken from the inflation suffered by Indonesia from 2015 to 2017.

US Dollar exchange rate
Exchange rate is a present or future standard currency exchange rate between two countries. This research uses US Dollar exchange rate towards IDR from 2015 to 2017.

Land Transportation Freight
Land Transportation Freight is the rates used to load and transport goods from places such as port. The data used in this research is taken from Surabaya Port land transportation freight rates from 2015 to 2017.

Data Analysis Technique
This research uses multiple linear regressions to prove the impact of inflation, US Dollar exchange rate, and land transportation freight towards non-oil & natural gas export to America, Japan, Australia, and England. Multiple linear regressions is used to analyze the condition (up and down) the dependent variable (criterion) if there are two or more independent variablesas manipulated predictor factors (the value is increased and decreased) (Sugiyono, 2014). Besides, this research also uses difference test to analyze the difference in non-oil & natural gas export in each country: America, Japan, Australia, and England.  The difference test finding shows significance value 0,013which is smaller than 0,05. It means that there are differences in non-oil & natural gas export to America, Japan, Australia and England.

Hypothesis Result Hypothesis Test 1
The first hypothesis can be proved. The data analysis shows t = -41,156 which is smaller than -1,689. It can be considered that the Inflation Level brings significant impact towards oil & natural gas export. However, the value of inflation towards non-oil & natural gas export shows low score which is 0,162. It can be concluded that the influence of inflation level towards nonoil & natural gas export is not too high. The influence value of inflation towards non-oil & natural gas exportis 0,238 which is in negative direction. The higher the inflation level is, the lower non-oil & natural gas activities are done.

Hypothesis Test 2
The second hypothesis is validly proved. The value of t is -39,961 which is smaller than -1,689. It can be concluded that the exchange rate brings significant impact towards oil & natural gas export. However, the level of significance between inflation and non-oil & natural gas export is very small which is. It can be concluded that the impact of exchange rate towards non-oil & natural gas export is not too high. The value of exchange rate towards non-oil & natural gas exportis 0,099 with positive direction which means the higher the exchange rate is, the higher the non-oil & natural gas exportactivities are done.
Multiple linear regressions analysis result shows that hypotheses H2.1, H2.2, H2.4 are not validly proved since the data analysis result shows that t value for America, Japan, and England is smaller than the table's t value (0,13 < 1,69 ; 0,112 < 1,69 ; 1,5 < 1,69). Therefore, it can be said that independent variable exchange rate brings no significant impact towards non-oil & natural gas exportto America, Japan, and England. On the other hand, hypothesis H2.3 is validly proved where the data analysis shows Australia's t valueis bigger than the table's t (2,5 > 1,69). Hence, it can be considered that the exchange rate brings significant impact towards non-oil & natural gas export to Australia.

Hypothesis Test 3
The third hypothesis in this research is validly proved since the data analysis shows t =36,152 which is bigger than 1,689. It can be concluded that land transportation freight brings significant impact towards oil & natural gas export. However, the significance level between land transportation freight and non-oil & natural gas exportshows low value which is 0,52. It can be concluded that the impact brought by land transportation freight towards non-oil & natural gas exportis not too big. It shows the value of 0,112 with positive direction. The higher land transportation freight is, the more non-oil & natural gas exportactivities are done.
Multiple linear regressions analysis result shows hypotheses H3.1, H3.2, H3.3, are not validly proved since the data analysis result shows that the value of t of America, Japan, Australia is smaller than

Hypothesis Test 4
The fourthhypothesis in this research is validly proved since the data analysis shows significance value= 0,013 which is smaller than 0,05. It can be concluded that there are differences in non-oil & natural gas exportto America, Japan, Australia, and England.

DISCUSSION
Based on the collecteddata analysis result, it can be seen that inflation level brings significant impact towards non-oil & natural gas exportshown by t=-41,156 which is smaller than -1,689. The impact of those two variables shows negative direction, 0,238 which means that the higher the inflation level is, the lower non-oil & natural gas exportare done and vice versa.It is caused by too high or low production cost since inflation level can make the producer not be able to decide suitable and stable price for the international market. Unstable inflation level also causes non-oil & natural gas exportactivity limitation since there is no certainty about its feedback towards economy growth in Indonesia.The multiple linear regressions result shows the inflation level brings no significant impact towards non-oil & natural gas exportto America, Japan, Australia, and England.
The data analysis also shows that exchange rate brings significant impact towards non-oil & natural gas exportshown by t value=-39,961 which is smaller than -1,689. The impact of those two variables show positive direction 0,099 which means that the higher the exchange rate is, the more non-oil & natural gas exportactivities are done, vice versa. It shows that IDR exchange rate towards US Dollar can influence non-oil & natural gas exportactivity in Surabaya Port.Multiple linear regressions result shows t value for Australia is bigger than table's t (2,5> 1,69). It can be concluded that exchange rate variable brings significant impact towards non-oil & natural gas exportto Australia.
The data analysis also shows that land transportation freight brings significant impact towards non-oil & natural gas exportshown by t value=36,152which is bigger than 1,689. The impact of those two variables show positive direction 0,112which means that the higher the land transportation freight is, the more non-oil & natural gas exportactivities are done, vice versa. It shows that land transportation freight can influence non-oil & natural gas exportactivity in Surabaya Port.Multiple linear regressions result shows t value for England is bigger than table's t (3,48> 1,69). It can be concluded that land transportation freight variable brings significant impact towards non-oil & natural gas exportto England. The difference test result