The Effect of Rupiah/US$ Exchange Rate, Inflation and SBI Interest Rate on Composite Stock Price Index (CSPI) in Indonesia Stock Exchange

Abstract

The capital market is one of the tools for economic growth for a country because the stock market is a means of capital formation and accumulation of long-term funds that are directed to increase community participation in the mobilization of funds to support national development financial. The sample used in this research are the data of Rupiah/US$ exchange rate, inflation, SBI interest rates and the Composite Stock Price Index (CSPI) in 2009 – 2013. Types of data used are monthly secondary quantitative data in 2009 – 2013 periods that were obtained from the official website of Bank Indonesia, SEKI and Indonesia Stock Exchange (IDX). The data analysis technique used is multiple linear regressions. The results of this research are: (1) there is a negative and significant effect of Rupiah/US$ exchange rate and SBI interest rate on Composite Stock Price Index (CSPI), while there is positive and significant effect of inflation on Composite Stock Price Index(CSPI), (2) there is a simultaneous effect of Rupiah/US$ exchange rate, inflation and interest SBI rate on Composite Stock Price Index (CSPI), (3) SBI intere