THE INFLUENCE OF WORLD STOCK INDEX, BI RATE AND FED RATE THROUGH IHSG ON EXCHANGE RATES IN INDONESIA FOR THE PERIOD OF 2006-2015

Abstract

This study aims to analyze external factors, namely the influence of the Nikkei 225 index and the Dow Jones index on the IHSG and the exchange rate in Indonesia for the period 2006-2015; and analyze the influence of Indonesian and foreign government policies through the BI rate and the Fed Rate on the JCI and the exchange rate in Indonesia for the period 2006-2015. The data analysis technique used is path analysis. The results showed that the Nikkei 225 index (X1), the Dow Jones index (X2), the BI rate (X3) and the Fed rate (X4) had a significant effect on the IHSG (Y1) in Indonesia in 2006-2015 and the Nikkei 225 index (X1), Dow Jones index (X2), BI rate (X3), Fed rate (X4), and IHSG (Y1) have a significant effect on the exchange rate (Y2) in Indonesia in 2006-2015.

Keywords

• Nikkei 225 index
• Dow Jones index
• BI rate
• Fed rate
• IHSG
• exchange rate