MACROECONOMIC AND GLOBAL COMPOSITE INDEXES THAT AFFECT JCI PERFORMANCE
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Psychosocial Rehabilitation, Vol.24, Issue 02
Abstract
The purpose of this study is to determine the effect of macroeconomic and global composite index to
the performance of Indonesia Stock Index (JCI) for the period 2018-2019 using monthly observation period. The
research method used is verification analysis. In this study, the dependent variable is the JCI performance while the
independent variable consists of macroeconomic elements, such as inflation, exchange rates, Bank Indonesia (BI)
interest rates, and the money supply (M2) and also global composite index consisting of Dow Jones index and
Shanghai Composite Index (SSEC). Data used is secondary data, published by Bank Indonesia and financial reports
that reported to the Indonesia Stock Exchange. The population in this study is macroeconomic conditions in
Indonesia and in the global composite period in January 2018-September 2019 that consisting 147 data. The results
showed that simultaneously inflation, exchange rate, BI rate, M2, Dow Jones Index and SSEC had a significant
effect to JCI with as much influence 72.63%. The results of this study also showed that partially exchange rates, M2
and SSEC affect JCI; while inflation, the BI rate and Dow Jones have no effect on JCI. Suggestions for this research
are that the government and investors always pay attention to macroeconomic conditions in Indonesia and always
monitor economic conditions in the world. Suggestions for other researchers are to increase the time period of the
study and to add other macroeconomic variables and global composite index.
Description
Keywords
Macro Economics, Global Composite Indexes