THE INFLUENCE OF MACROECONOMIC FACTORS ON THE INDONESIA STOCK PRICE INDEX AT CONSUMER GOODS SECTOR (SUB-SECTOR COSMETICS AND HOUSEHOLD INDUSTRY)

The capital market has a tremendous role in supporting the economic cycle since it can match individuals who have more money and those who need it. The capital market can be used as an investing-absorbing instrument and as tool to strengthen the financial position. In actuality, the capital market has taken a place as a financial nerve on the contemporary global economy. This study's goal is to identify the macroeconomic influences on the Indonesia Stock Price Index's subsector of the cosmetic and home goods industries. This study specifically attempts to look into the impact of inflation, the BI rate, currency rates, gold prices, and economic growth on the cosmetic and household industry subsector of the Indonesia Stock Price Index for the years 2019 through 2021. In terms of technique, secondary information was gathered from The Indonesia Stock Exchange's official website, Bank Indonesia official website, and the financial services authority which processed through the SPSS application. By using a multiple regression analysis tool, the data was processed. The findings revealed that inflation, BI rate, and gold prices have a significant impact while exchange rate and economic growth do not have a significant impact on The Indonesia Stock Price Index sub sector cosmetic and household industry. This study also includes a discussion, limitations, recommendations, and conclusions.
Keywords: Inflation, BI rate, exchange rate, gold prices, economic growth