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The Impact of Global Oil Price Movements and Foreign Exchange Rates on Return on Assets of PT Medco Energi Internasional Tbk

In: Proceedings of the International Conference on Economics, Business, Management and Accounting (ICEBesMA 2025)

Author

Listed:
  • Elfina Okto Posmaida Damanik

    (Universitas Prima Indonesia (UNPRI), Faculty of Economics)

  • Yusniar Lubis

    (Universitas Prima Indonesia (UNPRI), Faculty of Economics)

  • Robert Tua Siregar

    (Universitas Prima Indonesia (UNPRI), Faculty of Economics)

  • Sri Martina

    (Universitas Simalungun)

  • Resna Napitu

    (Universitas Simalungun)

Abstract

This study investigates the influence of global oil price fluctuations and exchange rate movements on the profitability of PT Medco Energi Internasional Tbk, measured by return on assets (ROA). The research adopts a quantitative descriptive approach, utilizing time series data from 2004 to 2024 and applying multiple linear regression analysis with SPSS version 26. The findings reveal that crude oil prices have no statistically significant effect on ROA ( $$t = -1.628; p = 0.121 > 0.05$$ t = - 1.628 ; p = 0.121 > 0.05 ), while exchange rates also show no significant impact ( $$t = --0.283; p = 0.780 > 0.05$$ t = - - 0.283 ; p = 0.780 > 0.05 ). Furthermore, the simultaneous F-test confirms that both variables together do not significantly affect ROA. These results suggest that external macroeconomic factors are not the primary drivers of profitability. The study is limited to one company and linear modeling, yet it contributes to financial management literature by emphasizing the importance of strengthening internal corporate strategies to ensure sustainable profitability.

Suggested Citation

  • Elfina Okto Posmaida Damanik & Yusniar Lubis & Robert Tua Siregar & Sri Martina & Resna Napitu, 2025. "The Impact of Global Oil Price Movements and Foreign Exchange Rates on Return on Assets of PT Medco Energi Internasional Tbk," Advances in Economics, Business and Management Research, in: Enda Noviyanti Simorangkir & Fajar Rezeki Ananda Lubis (ed.), Proceedings of the International Conference on Economics, Business, Management and Accounting (ICEBesMA 2025), pages 7-18, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-960-5_2
    DOI: 10.2991/978-94-6463-960-5_2
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