Analisis Makro Kinerja Pasar Modal Indonesia dengan Pendekatan Error Correction Model

Abstract

In Indonesia, monetary crisis had brought economy damage,particularly at the capital market. This study, concerns with Analysis of capital market conducted in makro economy perspective and using error correction model (ECM) approach. How did foreign exchange fluctuation, deposit at banking sector, real deposit rate. LlBOR, and monetary crisis since august 1997, influence market performance" This study Concludes that capital market pniOm1ance has a strong relahonsh1p with macro economy stability. A deterioration of macro economy stabilization could diminish investment in capital market, and then deteriorate capital market perfonnance. A conducive environment is needed to foster capital market performance in both macro and micro perspecti\'e, and so is the economic and non economic aspecL finally, mixed policy 1s badly needed to cover all the instability in economy.