Analysis of The Influence of Macro Variables of Interest, Exchange, And Inflation On The Joint Stock Price Index

Abstract

The stock exchange becomes one of indicator shown the modernity of one country and investment alternative as well. Stock Exchange activity reflected by an Indonesia Composite Index fluctuation which are influenced by macroeconomics variables such as interest rate, exchange value, and inflation. This study aims to determine the effect of, interest rates, exchange rate of rupiah and inflation against the Indonesia Composite Index(ICI. The type of research used explanatory research, with quantitative approach and took all time series data covering Interest Rates, Rupiah Exchange Rate, Inflation and Indonesia Composite Index(ICI) for the period of 1996 until 2020. The data analysis used multiple linear regression analysis using SPSS 23. The results of this studyindicate that the value of coefficient of determination(R2) 72.9% which means independent variables affect the dependent variable 72.9% and the rest is 27.1% influenced by other variables outside this study. F test results indicate that the independent variables of interest rate, exchange rate of rupiah, and inlation rate simultaneously have significant effect on the Indonesia Composite Index(ICI). The result of t test shows that the, interest rate variable partially have significant negative effect on Indonesia Composite Index(ICI), exchange rate variable partially have significant positive effeft on Indonesia Composite Index, while inflation variable partially negatively influenced the Indonesia Composite Index(ICI).