The Effect of Exchange Rate, Interest Rate, and Inflation on Jakarta Composite Index (IHSG) during COVID-19 Pandemic in Indonesia

This study aims to test and analyze the effect of macroeconomic factors on the Jakarta Composite Index during the Pandemic of COVID-19 in Indonesia. The macroeconomic factors used in this study as independent variables are Exchange Rate, Interest Rate, and Inflation. While Indeks Harga Saham Gabungan (IHSG) or Jakarta Composite Index is used as the dependent variable. This study uses daily data during the pandemic period in Indonesia, from April 2020 to June 2023. The secondary data are obtained from several official websites, such as www.investing.com and www.bi.go.id. The analysis technique used is descriptive analysis and hypothesis testing with STATA tools. The results obtained show that all independent variables have a significant effect on the dependent variable. Exchange rate and interest rate have a negative significant impact on IHSG. Conversely, the inflation effect is positively significant to IHSG. This research adds to our understanding of the financial dynamics in difficult times and provides insightful information for investors, analysts, and policymakers attempting to manage the intricacies of the stock market in the context of COVID-19.