Open AccessThe Effect of Economic Growth, Inflation Rate, and Interest Rates of Bank Indonesia on the Composite Stock Price Index on the Indonesia Stock Exchange for the 2015-2019 Period
Author(s) -
Ahmad Firdausi Akmal Al Haytami,
Heri Widodo
Publication year - 2021
Publication title -
academia open
Language(s) - English
Resource type - Journals
ISSN - 2714-7444
DOI - 10.21070/acopen.5.2021.2585
Subject(s) - economics , interest rate , stock exchange , monetary economics , stock (firearms) , composite index , inflation (cosmology) , exchange rate , indonesian , consumer price index (south africa) , monetary policy , finance , mechanical engineering , linguistics , philosophy , physics , theoretical physics , engineering
Generally, investors use the Composite Stock Price Index (IHSG) as a parameter of stock performance listed on the Indonesian stock exchange. One of the factors that can affect the JCI is macroeconomic factors such as economic growth, inflation, and interest rates. This study aims to determine the effect of economic growth, inflation rate, and interest rates of Bank Indonesia on the JCI. The population and samples in this study are quarterly economic growth, inflation, Bank Indonesia interest rates, the monthly Composite Stock Price Index (JCI) from 2015-2019. Testing the hypothesis of this study using the validity and reliability test with the SmartPLS version 3. The results showed that the variables of economic growth and inflation had no significant effect on the Composite Stock Price Index (JCI). Meanwhile, the interest rate variable of Bank Indonesia has a significant effect on the JCI.