Macroeconomic Factor Analysis of IHSG Movement : A Study on Inflation , Interest Rates, and Exchange Rates

Abstract

Study This aim For analyze influence factor macroeconomics to movement Composite Stock Price Index (IHSG) on the Indonesia Stock Exchange with focus on inflation , interest rates , and value exchange . IHSG is seen as the main barometer national capital market conditions are influenced by dynamics economy domestic both local and global. Research use approach quantitative with secondary data in the form of report monthly inflation , Bank Indonesia's benchmark interest rate , value Rupiah exchange rate against the US Dollar, as well as IHSG data for the period study certain . Analysis done with multiple linear regression For know significance influence variables macroeconomics the on the JCI. Research results show that inflation influential negative significant towards the JCI. This show that increase inflation lower Power buy society , improve cost production , as well as pressing profitability companies which is reflected in the weakening price shares . Interest rates are found influential negative However No significant against the IHSG, which indicates that although increase interest rates encourage investors to switch to instrument income still , the impact against the IHSG not always strong . Meanwhile that , value Rupiah exchange rate against US Dollar is proven influential negative significant . The weakening of the Rupiah tends to increase cost import , reduce profit company , as well as reduce interest of foreign investors , which ultimately suppressing the JCI. Findings This give implications important for investors to always consider factor macroeconomics in taking decision investment . In addition , the government and authorities monetary need guard stability inflation , interest rates , and value exchange to improve Power attract the Indonesian capital market and strengthen the role of the JCI as indicator economy national .