Proceedings of the 3rd International Conference on Advance & Scientific Innovation, ICASI 2020, 20 June 2020, Medan, Indonesia

Research Article

Inflatin Targeting Framework (ITF) and Indonesia Stable Market Index

  • @INPROCEEDINGS{10.4108/eai.20-6-2020.2300635,
        author={Iman  Lubis and Syamruddin  Syamruddin and Eni Puji Astuti and Amipriyadi Gerha Pemana},
        title={Inflatin Targeting Framework (ITF) and Indonesia Stable Market Index},
        proceedings={Proceedings of the 3rd International Conference on Advance \& Scientific Innovation, ICASI 2020, 20 June 2020, Medan, Indonesia},
        publisher={EAI},
        proceedings_a={ICASI},
        year={2020},
        month={9},
        keywords={markov switching regime; stable price; and index market;},
        doi={10.4108/eai.20-6-2020.2300635}
    }
    
  • Iman Lubis
    Syamruddin Syamruddin
    Eni Puji Astuti
    Amipriyadi Gerha Pemana
    Year: 2020
    Inflatin Targeting Framework (ITF) and Indonesia Stable Market Index
    ICASI
    EAI
    DOI: 10.4108/eai.20-6-2020.2300635
Iman Lubis1,*, Syamruddin Syamruddin1, Eni Puji Astuti1, Amipriyadi Gerha Pemana2
  • 1: University of Pamulang, Tangerang Selatan
  • 2: University of Pancasila, Jakarta Selatan
*Contact email: dosen01479@unpam.ac.id

Abstract

The objective is linking the monetary policy to stable price indexes market in Indonesia. The monetary policies are BI rate (BI rate 7 days Repo) and Inflation. Meanwhile, Stable price market indexes are FTSE Indonesia, 30 Index, Development Board Index, Miscellaneous Index, Sharia Index, and LQ-45 Index. The method is used Markov Switching 2 Regimes. The data are monthly 5 years behind from March 2015 to February 2020. The results are that only can inflation negatively affect bearish markets and can BI rate negatively influence bullish markets.