Inflation, Amount of Currency, Dollar Exchange Value, and Interest on IHSG in Indonesia Stock Exchange

Abstract

This study aims to determine whether inflation, the amount of money in circulation, the dollar exchange rate and interest rates are factors that affect the Composite Stock Price Index. This research uses deductive, quantitative, and descriptive approaches. The population to be used for 5 years. The determination of the sample is saturated so that the data is 60 data, where 5 years x 12 months. The data analysis method uses multiple linear regression analysis, classical assumption test and hypothesis testing. The results showed that partially inflation and the dollar exchange rate had no impact on the JCI while the money supply had a significant positive impact on the JCI, interest rates had a significant negative impact on the JCI. Simultaneously, inflation, money supply, dollar exchange rate and interest rates have a significant impact on the JCI. Based on the results of the coefficient of determination test, the value of a Adjusted R Square is 0.709, which means that 70.9% of the variance of the JCI variable can be explained by the inflation variable, the amount of money in circulation, the dollar exchange rate and the remaining interest rate is influenced by other variables of 29.1%. for example world oil prices and GDP.