Abstract
The Indonesian Syariah Stock Index (ISSI) is an indicator that can be used by investors to know the movements of the sharia stock market. This research aims to analyze the effect of the Indonesian Syariah Stock Index (ISSI) on the Indonesian Stock Exchange (IDX). The analysis uses equations by the method of Error Correction Model (ECM). This study analyzed the relationship between the dependent and independent variables in both the short term and long term. Estimation results show that in the long term and the short term, the variable amount of the inflation was a positif and significant in the short term but not significant in the long term affect the Indonesian Syariah Stock Index (ISSI). The variable amount of the BI rate and exchange rate was a negative and significant in the short term but not significant in the long term affect the Indonesian Syariah Stock Index (ISSI). These results show that inflation, BI rate and exchange rate was significant in the short term affect the Indonesian Syariah Stock Index (ISSI) on the Indonesian Stock Exchange (IDX).
Highlights
INTRODUCTION he capital market has a very important role in the economic development of a country, because with increasing capital gathered in an economy will be able to raise national income and employment for the economy will be able to raise national income and employment for the economy
According to Syahrir (1995:81) to be able to answer whether the stock market will continue to grow on an ongoing basis the most important factors determining depends on two things, namely the condition of macro economy Indonesia and political stability nationwide
The estimation model used in this study is the analysis of Error Correction Model (ECM) or known by the error correction model is a model that is used to look at the influence of long term and short term from each of the independent variables are bound against free (Satria, 2004)
Summary
INTRODUCTION he capital market has a very important role in the economic development of a country, because with increasing capital gathered in an economy will be able to raise national income and employment for the economy will be able to raise national income and employment for the economy. Sharia capital market in Indonesia is getting lively with the birth of Indonesian Syariah Stock Index (ISSI) issued by the Bapepam-LK and the Board of the National Assembly of the Islamic Ulama Indonesia (DSN-MUI) on May 12, 2011. The development of Islamic stock index was influenced by several macro-economic and monetary factors such as Bank Indonesia Certificate interest rate, inflation, exchange rates and other internal factors such as the condition of the national economy, the conditions politics, security, Government policy, and others. The development of Indonesian Syariah Stock Index (ISSI) in Indonesia stock exchange (idx) for kurum time 2015 – 2017 fluctuating progression. In the year 2015, Indonesian Syariah Stock Index (ISSI) experienced a growing increase in i.e. from January 2015 until March 2015. High low ISSI can reflect the development of Sharia capital market in Indonesia
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