The Effect of Inflation Rate, Exchange Rate, The Certificate of Bank Indonesia (SBI) Interest Rate and Sharia Stock Trading Volume on Sharia Stock Performance in Companies Listed on the Indonesian Sharia Stock Index (ISSI)

This study aims to determine and analyze the effect of the inflation rate, exchange rate, SBI interest rate and Sharia stock trading volume on the performance of Sharia stocks in companies listed on the Indonesian Sharia Stock Index. In this study, a research model was created using Sharia stock performance as the dependent variable. While the independent variables are the inflation rate, exchange rate, certificate of Bank Indonesia (SBI) interest rate and Sharia stock trading volume. The research method used is quantitative research method with multiple regression models using panel data. The research object employs Sharia stocks from companies that are in the Indonesian Sharia Stock Index (ISSI), namely Sharia stocks that are listed on the stock exchange, active, and meet the requirements of the Capital Market in Indonesia during the period January 2014 to December 2018. The object of this research includes all 392 companies using purposive sampling technique. Further, the samples used are 278 companies that meet the requirements. Based on the results, it shows that the inflation rate has no effect on the performance of Sharia stocks. Next, the exchange rate and the SBI interest rate have a significant negative effect on the performance of Sharia stocks, while the trading volume of Sharia stocks has no effect on the performance of Sharia stocks

Constructing the Index of Indonesian Monthly Private Consumption Expenditure

Private consumption expenditure (PCE) contributes a major share in Indonesian GDP and its growth has been dominating the economic growth. PCE is also linked directly to the welfare of Indonesian people making it even more relevant for its close monitoring. However, despite the high volatility of macroeconomic conditions due to both global and domestic disturbances, indicators that measure PCE in frequency higher than quarterly is not yet existent in Indonesia. This paper is the first attempt to construct a monthly index of private consumption expenditure for Indonesia. Using a methodology based on the experience of other countries and constrained with data availability, we devise the index based on four statistically relevant variables: value added tax revenue, excise tax revenue, electricity consumption, and fuel consumption. Using the weights estimated based on the principal component analysis we found that our monthly PCE index fits well and correlate highly with the quarterly private consumption expenditure from the national accounts data. We hope that our initial attempt to construct the monthly PCE index will encourage others to devise even better measure of monthly consumption indicators.Private consumption expenditure, Macroeconomic Policies, Indonesia

Local Government Expenditures, Institutional Quality and the Inclusive Economic Development Index (Iedi) in Indonesia

The purpose of this study was to determine the effect of local government spending and institutional quality on the inclusive economy in Indonesia. To avoid the problems of endogeneity and omitted variable bias, the method used in this study is the system generalized method of moments (GMM). It was found that local government spending on housing and social functions positively and significantly affected the Inclusive Economic Development Index (IEDI). In contrast, government spending on health had a significant negative effect. Spending on education had an insignificant negative effect, while investment had a positive and significant effect on IEDI. The corruption rate as a proxy for the quality of institutional processes had a significant adverse impact on IEDI. This study provides an overview of the role and influence of local government policies and institutional quality that affect the region’s development and inclusive economic growth