Abstract
This study aims to determine the effect of inflation, interest rates, and the Covid-19 pandemic condition on the Jakarta Composite Index (JCI) and the difference of the JCI before and after the Large-Scale Social Restrictions (LSSR). Data were collected from January to August 2020. This study evaluates the effect of inflation, interest rate, the Covid-19 Pandemic on the JCI by the t-test and regression, while the Wilcoxon Test tested the JCI before and after LSSR. The results revealed that inflation, interest rates, and the Covid-19 pandemic partially and simultaneously affected the JCI. All shares traded in the Indonesia Stock Exchange indexed by the JCI before LSSR are different from the JCI after LSSR.
Highlights
Indonesia's government officially confirmed a Corona pandemic on March 2, 2020
One of the effects on the economic sector is the instability of the Jakarta Composite Index (JCI)
It can be concluded that JCI in three months before Large-Scale Social Restrictions (LSSR) is decreased
Summary
Indonesia's government officially confirmed a Corona pandemic on March 2, 2020. Beginning in China, the virus has been spread in many other countries. Coronavirus, or Covid-19, has rapidly ravaged various aspects of humans’ lives in the medical, education, and economic sectors. One of the effects on the economic sector is the instability of the Jakarta Composite Index (JCI). This pandemic makes the economic activities are affected. IMF and the World Bank have predicted that the Covid-19 pandemic triggered a global economic recession. According to the Indonesia Ministry of Health, the existence of the Covid-19 virus has influenced the Jakarta Composite Index (JCI). The stock price would fall off as the rising of market concerns towards the effect of the Covid-19 pandemic on the Indonesian economy
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