PENGARUH SUKU BUNGA DAN PENANAMAN MODAL ASING TERHADAP PERKEMBANGAN PASAR MODAL INDONESIA

Abstract

This research aims to determine the influence of interest rates and foreign investment on the development of the Indonesian capital market. This research uses secondary data taken from Indonesian bank sources from 1990 to 2020 using Descriptive Statistics research methods. The financial sector is at the head of the growth rate of the real sector through capital accumulation and technological innovation. The capital markets sector shows optimism visible from the crowd of companies who plan for initial offerings (IPO). OJK recorded, raising funds in the capital market as of July 27, 2020, had reached IDR 116.6 trillion. Twenty-seven new issuers have successfully landed on the stock exchange. Not only that, there are still 86 other issuers preparing for an IPO worth IDR 54.2 trillion. The research results show that the influence of interest rates on capital market development has a negative effect, while foreign investment has a positive effect on capital market growth. Interest rates and foreign investment simultaneously influence capital market development by 79%, while the other 21% is influenced by other factors