The Influence of BI Rate, Inflation, and Exchange Rate on The IDX Composite Stock Index (IHSG)

  • Ratnaningrum Ratnaningrum STIE Studi Ekonomi Modern
  • Bella Kharisma Putri
  • Retno Wulandari
  • Kusna Djati Purnama
Keywords: BI rate, inflation rate, USD/IDR exchange rate, IDX Composite Price Index (IHSG)

Abstract

This study investigates the impact of variations in the BI rate, inflation rate, and the USD/IDR (US Dollar to Indonesian Rupiah) exchange rate on the IDX Composite Index (IHSG). The Composite Stock Price Index  is one of the resources that investors use to choose their investing strategy. Inflation, exchange rates, business interest rates, and the IHSG are among the variables that make up the sample used in this study, which spans 60 months from January 2015 to December 2019. The analysis of the data was done using multiple regression methods. According to the findings, the IHSG is negatively impacted by changes in the BI rate, positively impacted by changes in the USD/IDR exchange rate, and not impacted at all by changes in the inflation rate. Additional analysis should look at additional potential macroeconomic factors.

 

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Author Biographies

Bella Kharisma Putri

 

 

Retno Wulandari

 

 

Kusna Djati Purnama

 

 

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Published
2023-03-19
How to Cite
Ratnaningrum, R., Putri, B. K., Wulandari, R., & Purnama, K. D. (2023). The Influence of BI Rate, Inflation, and Exchange Rate on The IDX Composite Stock Index (IHSG). International Journal of Science, Technology & Management, 4(2), 428-433. https://doi.org/10.46729/ijstm.v4i2.779
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Articles