The effect of inflation rate, rupiah exchange rate, world oil prices, and world gold prices on indonesia sharia stock index (ISSI)

Morrin Silvia Handriani; Isnurhadi Isnurhadi; Yuliani Yuliani; Sulastri Sulastri

doi:10.31295/ijbem.v4n2.1701

Authors

Morrin Silvia Handriani
mhandriani@gmail.com
Master of Management, Sriwijaya University, Palembang, Indonesia
Isnurhadi Lecturer of Magister Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia
Yuliani Lecturer of Magister Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia
Sulastri Lecturer of Magister Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia

Keywords:

inflation, rupiah exchange rate, world gold prices against the Indonesian Sharia stock index, world oil prices

Abstract

This study aims to determine the effect of inflation, the exchange rate rupiah, world oil prices, and the price of gold in the world of the Indonesian Islamic stock index. The samples used were 60 data for 2014-2018 with sampling techniques saturated. The data analysis technique used multiple linear regression analysis. Results obtained are inflation and significant negative impact on ISSI, use-values rupiah and significant negative impact on ISSI, world oil prices have no significant impact on ISSI, world gold prices have a positive and significant impact on ISSI. To achieve the inflation target set by the Government, Bank Indonesia may implement policies that include: a) open market operations on the rupiah money market, including foreign exchange intervention to stabilize the rupiah; b) determination of the BI rate as the benchmark interest rate and c) stipulation of a policy of minimum statutory reserves for banks. The implementation of monetary control is carried out through banks operating conventionally and through the activities of banks operating based on sharia.

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