ANALYSIS OF COMPOSITE STOCK PRICE INDEX IN INDONESIA, 1988-2020

Abstract

Purpose: Research this aim to prove that existence influences variable macroeconomics namely GDP, money supply, and inflation against the Composite Stock Price Index. Method: The method used is Autoregressive Distributed Lag (ARDL) model approach, for study this could see dynamics with long- term and short-term relationships on the variables of GDP, money supply, inflation, and Composite Stock Price Index. Data analysis: This type of research includes correlation research. Result and discussion: Results of a study using the ARDL model with long term relationship only the money supply that affects the Composite Stock Price Index significantly significant because have score probability of 0.0001 less from the alpha value of 0.05. Third short-term relationship variable independent directly affect the Composite Stock Price Index significant i.e. GDP value probability 0.0083, JUB value probability 0.0443, and inflation score probability is 0.000, three variable the scoring probability not enough from the alpha value of 0.05, Conclusion: This is the government to stabilize and analyze all macroeconomic factors to attract investors to invest so that later it will help the economy in Indonesia.