Implications of the Trade Balance on the Indonesia Composite Index

DOI

10.2991/aisr.k.220201.015How to use a DOI?

Keywords

Covid-19; Exchange Rate; Balance Of Trade; Indonesia Composite Index

Abstract

This paper aims to determine the effect of the Covid-19 scenario, the Rupiah Exchange Rate, on the Indonesia Composite Index via the Balance Of Trade. From September 2019 to August 2021, the variables employed in this study are the development of active Covid-19 (C-19) cases in Indonesia, as well as macroeconomic indicators such as the Rupiah Exchange Rate (ER), Balance Of Trade (BOT), and Indonesia Composite Index (ICI). The research approach used in this study is a quantitative descriptive study with the analytical tool WarpPls version 5.0. The obtained results prove that C-19 has a considerable adverse influence on BOT in Indonesia. The second finding is that ER has a significant favourable impact on BOT. Thirdly, C-19, ER, and BOT have a strong beneficial effect on ICI. The Sobel test established that BOT can mediate the effects of C-19 and ER on ICI. The research concludes that investors should monitor the evolution of C-19 and macroeconomic variables such as ER and BOT that substantially impact ICI movements before participating in the capital market.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Maria Safitri
AU  - Vicky Oktavia
PY  - 2022
DA  - 2022/02/02
TI  - Implications of the Trade Balance on the Indonesia Composite Index
BT  - Proceedings of the 2nd International Conference on Industry 4.0 and Artificial Intelligence (ICIAI 2021)
PB  - Atlantis Press
SP  - 78
EP  - 82
SN  - 1951-6851
UR  - https://doi.org/10.2991/aisr.k.220201.015
DO  - 10.2991/aisr.k.220201.015
ID  - Safitri2022
ER  -