FACTORS INFLUENCING THE STOCK PRICES IN INDONESIA

Understanding the dynamics of stock prices is critical for investors, decision-makers, and market
players because the stock market is so important to the Indonesian economy. A thorough
investigation into the variables affecting Indonesian stock prices is still required, as well as
research into the consequences for investors and the stability of the market as a whole. This study
aims to examine the impact of world oil prices, profitability, economic growth, inflation, and
exchange rates on stock price in Indonesia from the year 2019 until 2021. This study uses a
quantitative approach and uses panel data analysis to investigate data obtained from financial
statements and stock market information. The results show that there is a significant relationship
between world oil prices and profitability of mining companies in Indonesia. However, economic
growth, inflation, exchange rate have no significant impact on mining companies in Indonesia.
Higher oil prices have a positive impact on the profitability of mining companies, which indicates
their sensitivity to fluctuations in world oil prices. These results have important implications for
investors, policy makers, and mining companies in understanding the factors that affect the
performance of mining companies in Indonesia.