EFFECT OF INTEREST RATES AND INFLATION OF REFERENCE BANK INDONESIA STOCK PRICE INDEX

Abstract

This study aims to analyze the influence of Reference Interest Rate and Inflation Bank Indonesia on the Jakarta Composite Index , either partially or simultaneously . The population in this study is the Indonesia Stock Exchange in which there throughout Composite Stock Price Index data . The samples used were the Composite Stock Price Index data from January 2008 to October 2011 . The data used are secondary data from the reports on electronic publications Indonesia Stock Exchange and Bank Indonesia . Data collection techniques to the study of literature . The analytical method used is multiple linear regression analyzes were performed with SPSS 17 . To analyze whether each independent variable affects the dependent variable , use partial test ( t test ) and simultaneously test ( F test ) . The results of this study indicate that partial variable Interest Rate Reference Bank Indonesia significant negative effect on the movement of the Composite Stock Price Index - value is smaller than the t - t table ( -7.654 < -2.017 ) . Variable Inflation significant positive effect on the movement of the Composite Stock Price Index t value is greater than t table ( 4.623 > 2.017 ) . Simultaneously variable Interest Rate Reference Bank Indonesia and inflation have a significant effect on the movement Composite Stock Price Index as calculated F value is greater than the F table ( 41.444 > 4.067 ) . In addition , test results obtained coefficient of determination of 65.8 percent , which means the variation variable Interest Rate and Inflation Reference Bank Indonesia is able to provide influence for 65.8 percent of the variation variables Composite Stock Price Index.