Open AccessKeterkaitan Pasar Valuta Asing dan Saham di Indonesia dengan Beberapa Negara Mitra Utama: 1998-2009
Author(s) -
Lana Soelistianingsih
Publication year - 2010
Publication title -
jurnal ekonomi dan pembangunan indonesia
Language(s) - English
Resource type - Journals
eISSN - 2406-9280
pISSN - 1411-5212
DOI - 10.21002/jepi.v10i2.113
Subject(s) - indonesian , economics , currency , monetary economics , capital market , portfolio , capital (architecture) , international economics , financial economics , finance , geography , philosophy , linguistics , archaeology
Using co-integration, the results show that the movement of Indonesian foreign exchange market and capital market has moved to long—run equilibrium with other currencies and indices from partner countries, while the short-run equilibrium between markets have been proved by using VECM. The Indonesian case supports portfolio balance approach introduced by Frankel. The increasing of IHSG attracts capital inflows and makes the demand for domesfic currency higher, and IDR becomes appreciation. Indonesian market has strong linkages with Asian regional markets especially with Hong Kong market, while having no relationship with US market.