THE EFFECT OF INFLATION, INTEREST RATES, AND EXCHANGE RATES ON THE COMPOSITE STOCK PRICE INDEX ON THE INDONESIA STOCK EXCHANGE

Rahmad Zulhiansyah Simatupang, Isfenti Sadalia, Nisrul Irawati

Abstract


Abstract

 

This study aims to investigate the potential influence of Inflation, Interest Rates, and Exchange Rates on the Composite Stock Price Index in the Indonesia Stock Exchange, both individually and collectively. The research approach employed is a positivist one. The study's population encompasses all the companies listed on the Indonesia Stock Exchange, and the sample is derived through purposive sampling. The analytical method applied is multiple linear regression analysis, classical assumption tests, hypothesis testing, and the determination of coefficients, using SPSS software. Based on the research findings, several conclusions can be drawn: (1) Inflation exhibits a positive and statistically significant influence on the composite stock price index. (2) Interest rates also have a positive and statistically significant impact on the composite stock price index. (3) Conversely, exchange rates have a negative and statistically significant effect on the composite stock price index. (4) Simultaneously, it is evident that inflation, interest rates, and exchange rates collectively exert a statistically significant influence on the composite stock price index within the Indonesia Stock Exchange.

 

Keywords: Inflation; Interest Rates; Exchange Rates; Composite Stock Price Index.


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