THE IMPACT OF MACROECONOMIC FACTORS ON INDONESIA STOCK MARKET

The purpose of this study is to assess how macroeconomic factors affect the performance of the Indonesian stock market by observing the stock price of the LQ45 index. The stock market is an important indicator that influences the development and progress of a country's economy. Technically, stock market price movements depend on investor decisions. In making investment decisions, investors generally pay attention to the macroeconomic situation of the country. The multiple linear regression analysis method is used in analysing the relationship, which is assisted by SPSS version 26. The five independent variables observed are the inflation rate, interest rate, exchange rate, money supply, and GDP. The data collected is from 2018 to 2022. The results of this study indicate that the exchange rate has a significant negative effect on the LQ45 index stock price. Inflation, interest rates, and the money supply have a positive relationship with the movement of the LQ45 index stock price, and the GDP level is negatively related.