Analysis Pearson Correlation on National Broad Money ( M 2 ) and Deposit Distribution In Indonesia ( case study : January 2006 – August 2016 )

Indonesia has experienced periods of major economic crisis, the economic crisis that occurred in May 1998 was the cause of economic prices soared, rupiah exchange rate rupiah Rp. 2.000,00 per dollar up to Rp. 20.000,00 or we call the devaluation of rupiah. Causing 16 banks liquidation to cause rush money, even BCA (Bank Central Asia) had experienced rush money. The money in a hurry is large and simultaneous cash. Rush Money because people worried that the bank was liquidation then they can’t take the money in the savings. But thanks to government assistance, BCA which could get back to normal. Economic step by step after May 1998 become normal.


I. Introduction
Indonesia has experienced periods of major economic crisis, the economic crisis that occurred in May 1998 was the cause of economic prices soared, rupiah exchange rate rupiah Rp. 2.000,00 per dollar up to Rp. 20.000,00 or we call the devaluation of rupiah.Causing 16 banks liquidation to cause rush money, even BCA (Bank Central Asia) had experienced rush money.The money in a hurry is large and simultaneous cash.Rush Money because people worried that the bank was liquidation then they can't take the money in the savings.But thanks to government assistance, BCA which could get back to normal.Economic step by step after May 1998 become normal.
After May 1998, there were also several banks that merged into the government's objectives at that time.Example Namely Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor Impor Indonesia, and Bank Pembangunan Indonesia into one bank, the bank Mandiri.Because of this economic crisis, the government also learn by forming an institution that guarantees the customer's money in order to remain a bank / financial institution.
A lesson for the banking industry including the government resulting from the monetary crisis in May 1998 to not happen again.Primarily to collect cash form a financial institution.So in 2004 the establishment of Lembaga Penjamin Simpanan (LPS) or IDIC (Indoneisa Deposit Insurance Corporation) in English.
Eventually, on 22 September 2004, the President of Republic of Indonesia enacted the Republic of Indonesia Law Number 24 concerning LPS.With regards to the law, LPS is established as an independent institution that functions to insure depositor's funds and actively participates in maintaining stability in the banking system in accordance with its authorized mandate.The Law The purpose of this research is to prove positive connection between circulation money (M2) with total of money which is secured in IDIC.This research data is coming from Bank Indonesia and IDIC website.This research is using analysis of pearson correlation and statistical analysis description.Result from this analysis is correlation between circulation money (M2) with total of money which is secured in IDIC as total as 0,99.From growth Yoy 2006-2014 ,circulation money years by years get up and down but on 2015-2016, circulation money get declining and this decline is not big decline.National Broad Money may be defined narrowly or broadly.Narrow broad money (M1) may be defined to include Currency Outside Commercial and Rural Banks and Demand Deposits denominated in Rupiah currency.Broader measure (M2) may cover M1, Saving Deposits, Time Deposits in Rupiah and foreign currency, Demand deposits in foreign currency and Securities other than shares issued by monetary system owned by domestic private sector, with remaining maturity up to 1 (one) year (www.BI.go.id).
The solution is information in deposit distribution in LPS must correlation with national broad money.In this section writer user Correlation Pearson Analysis In statistics, the value of the correlation coefficient varies between +1 and -1..As the correlation coefficient value goes towards 0, the relationship between the two variables will be weaker.The most common measure of correlation in stats is the Pearson Correlation.The full name is the Pearson Product Moment Correlation or PPMC.It shows the linear relationship between two sets of data.Not Only Correlation, this correlation Analysis can be use in descriptive analysis statistics.Analysis data make data easy to understand everyone who read it.
So the paper divided in two section correlation using Pearson Correlation and descriptive analysis.

II. Problems Formulations
Pearson r correlation: Pearson r correlation is widely used in statistics to measure the degree of the relationship between linear related variables.Pearson r correlation is used to measure the degree of relationship between the two commodities.The following formula is used to calculate the Pearson r correlation: Assumptions For the Pearson r correlation, both variables should be normally distributed.Other assumptions include linearity and homoscedasticity.Linearity assumes a straight line relationship between each of the variables in the analysis and homoscedasticity assumes that data is normally distributed about the regression line.The Pearson correlation coefficient, r, can take a range of values from +1 to -1.A value of 0 indicates that there is no association between the two variables.A value greater than 0 indicates a positive association; that is, as the value of one variable increases, so does the value of the other variable.A value less than 0 indicates a negative association; that is, as the value of one variable increases, the value of the other variable decreases.This is shown in the diagram below: The stronger the association of the two variables, the closer the Pearson correlation coefficient, r, will be to either +1 or -1 depending on whether the relationship is positive or negative, respectively.Achieving a value of +1 or -1means that all your data points are included on the line of best fitthere are no data points that show any variation away from this line.Values for r between +1 and -1 (for example, r = 0.8 or -0.4) indicate that there is variation around the line of best fit.The closer the value of r to 0 the greater the variation around the line of best fit.

III. A Step before the Final Submission
The first we collect data as many as we can get, the first data from LPS, in distributed data LPS data only from January 2006, until August 2016.Then collect data with the time same as LPS from BI.After collect data, screening data is suitable with the paper.
First Variable about national broad money, second variable about information on deposit information.After collect data both variable, check normal distribution to the both variable.
Using Microsoft Excel.Both variable are normal, after data normal, analysis can be next step.Then descriptive analysis to the both variable and difference between two variable descriptive analysis.Settlement by making a Pearson correlation analysis.

Headings and format
Figures, tables, and equations.
r Ν Σ xy − Σ(x)(y) √  ²−  (²)][   ²− (²)]   Where: r = Pearson r correlation coefficient N = number of value in each data set Σxy = sum of the products of paired scores First Author et al. 4 Σx = sum of x scores Σy = sum of y scores Σx2= sum of squared x scores Σy2= sum of squared y scores

Fig. 3 .
Fig. 3.2.1.2GrowthYoy 2006-2014, circulation money years by years get up and down but on 2015-2016, circulation money get declining and this decline is not big decline.From this data, Indonesian Economic Development also in negative point, that's make government many policy economy to help Indonesian Economic Development in Positive Point such as tax amnesty.Moratorium CPNS (Calon Pegawai Negeri Sipil), Moratorium expansion regional and etc.
took effect on 22 September 2005 and IDIC officially began its operations as of that date.(www.LPS.go.id)National Broad Money covers liabilities of monetary system (central bank, commercial and rural banks) to domestic private sector (excluding central government holdings of central bank liabilities other than currency and non-resident).Summary national broad money covers all the money circulation in society. effectively