THE EFFECT OF THE GLOBAL STOCK INDEX ON THE JOINT STOCK PRICE INDEX (JCI) IN THE INDONESIA STOCK EXCHANGE, 2015 – 2019

The purpose of this study is to identify and analyze the impact of the global index, are the Dow Jones Index (DJIA), Nikkei 225(N225), Shanghai Composite Indеx Composite (SSEC) and Singapore Straits Times (STI) Against the Jakarta Composite Index (JKSE) on the Indonesia Stock Exchange (IDX). This type of research is explanatory research with quantitative research. This study takes all the time series data listed on the Dow Jones Index, Nikkei 225 Index, Shanghai Stock Composite Іndеx, Singapore Straits Times Index, and the Jakarta Composite Index (JKSE) for the period January 2015 to December 2019. The research sample used was 60 samples. The data analysis technique used is multiple linear regression analysis. Hypothesis testing results show the Dow Jones Index, Nikkei 225 Index, Shanghai Composite Еxchange Composite Іndеx, Singapore Straits Times Index, Financial Times Stock Exchange 100 and the Kuala Lumpur Composite Index associated simultaneously with the Jakarta Composite Index (JKSE). The Dow Jones Index has a significant effect on the positive direction of the Jakarta Composite Index (JKSE), The Nikkei 225 index has a significant effect on the negative direction of the Jakarta Composite Index (JKSE), Kuala Lumpur Composite Index 100 has a significant on the positive direction of the Jakarta Composite Index.


INTRODUCTION
The world economy has entered the era of globalization.This condition is marked by increasing economic relations between countries.The development of financial investment in various countries is one of the factors that cause this dependence.The financial investment made in the capital market will increase the national output of a country which in turn will affect the economy as a whole.
During the 1980s the world's capital markets began to move towards greater global integration.Several factors explain this movement.One of them is that investors are starting to realize the benefits of international portfolio diversification (Eun & Shim, 1989).The impact of globalization, The multicollinearity test aims to test whether the regression model found a correlation between the independent variables (independent).A good regression model should not correlate with the independent variables.If the independent variables are mutually correlated, then these variables are not original (Ghozali, 2011).
There are several methods used to detect multicollinearity, but to detect the presence or absence of multicollinearity in the regression model in this study, it is seen from the tolerance value variance inflation factor (VIF).

Autocorrelation Test
Autocorrelation shows residual properties that are not independent of one observation to another.To detect the presence or absence of autocorrelation, the Breusch -Godfrey Test is used, with the following criteria: a.If Prob.Chi Square > a = 0.05 then ho is rejected b.If Prob.Chi Square < a = 0.05 then ho is accepted 3. Heteroscedasticity Test Heteroscedasticity occurs when the variance of Ut is not constant or changes frequently as the value of the independent variable changes (Gujarati, 2006).The heteroscedasticity test aims to test whether in the regression model there is an inequality of variance from the residuals of one observation to another observation.If the variance from the residual of one observation to another observation is fixed, it is called homoscedasticity and if the variance is not constant or changing it is called heteroscedasticity.

D. Hypothesis Testing
The analytical technique used in this study is quantitative data analysis, to quantitatively estimate the influence of several independent variables simultaneously (simultaneously) or partially (individually) on the dependent variable.The functional relationship between the independent variable and the dependent variable can be done with multiple regression.The analytical method used is linear regression model with the following model: Seeing the results of the VIF values obtained in the table shows the independent variables in the regression model are not correlated with each other.The VIF value obtained for each independent variable is less than 10 and.This shows that there is no correlation between the independent variables in the regression model and it is concluded that there is no multicollinearity problem among the independent variables in the regression model that is formed.

C. Discussion
1.The effect of the Dow Jones Index on the Composite Stock Price Index (CSPI) America, which is one of the countries with the largest economy, will certainly affect the economy of other countries, therefore economic changes in the United States will more or less affect the economy in Indonesia.The Dow Jones Index is the largest average stock price index in the world in the American Capital Market.America is still a superpower country that can affect Indonesia's economic conditions.
In monetary terms, the decision on the interest rate applied by Bank Indonesia is still based on the movement of the Fed.Export-Import in Indonesia still uses the US dollar currency.Therefore, the movement of the Dow Jones index can affect almost all world stock price indexes, including the JCI in Indonesia.
The Dow Jones index is moving up, indicating the performance of the United States economy, in general, is in a good position.With good economic conditions, it will drive the Indonesian economy through export activities and capital inflows, both direct investment and through the capital market.This research supports the research of Immanuel (Wicaksono & Yasa, 2017).

The influence of the Nikkei 225 Index on the Composite Stock Price Index (JCI)
The Nikkei 225 index which is one of the main indexes in Japan, the movement of this index will be one of the analytical tools by investors because the Nikkei 225 is one of the most influential indexes, this is because Japan is a country that greatly influences the world's economic cycle (Surbakti, 2012).
The results of this study indicate that the Nikkei 225 has a significant negative effect on the JCI.Japan, which since 2018 has been facing economic turmoil that could lead to a possible recession, began the decline in the Japanese economy, which contracted 2.5 percent in the third quarter of 2018, which marked the worst slump in four years, this was exacerbated by the statement "A total of 28 of 38 economists said Japan could fall into a recession in the 2019 fiscal year" (Internasional.kontan.co.id) which pushed investor perceptions to worsen.Plus, in October 2019 the Prime Minister's Government Japanese launched a policy of increasing the national sales tax from 8 percent to 10 percent, which it feared would hurt the economy amid the trade war and sluggish external demand.
Because of this, the Nikkei 225 index experienced a bearish trend from October 2018 to early 2019 and had touched its lowest point at that time in the 1900s.In contrast to the JCI, which had risen at that time, even to the 6400s.
This may occur because the slowdown in Japan's economic growth of 0.6% will invite a response from the government and monetary authorities in each country in the form of looser fiscal and monetary policies.Loose fiscal and monetary policies, particularly in America and Europe, will have a positive impact on encouraging foreign capital flows to develop countries, including Indonesia.This is also supported by the government's policy which is one of the positive sentiments for the stock market, with the government's steps in intensifying investment activities as a positive sentiment for investors.With this, investors will prefer to invest their funds in Indonesia with a lower level of risk.
This research supports the research of (Wicaksono & Yasa, 2017).In contrast to the research, (Utama & Artini, 2015) states that .N225 does not affect the JCI.

Effect of Shanghai Stock Exchange Composite Index on Stock Price Index (CSPI)
China became a destination country for Indonesian exports the largest after Japan, of course, the rise and fall of the index SSEC being China's main index will affect the Indonesian capital market.
The results of the study stated that the SSEC index did not affect the JCI because of other influences that were considered by investors, especially foreign investors to invest their funds in a country's capital market.In 2015, China, which was experiencing an economic slowdown at that time, was reflected by the decline in the SSEC Index which immediately moved bearish.
In 2019 China, which conflicted with the US in terms of a trade war which made China's economic condition unstable itself, this had an impact on the Chinese capital market becoming less attractive because of the large investment risk that would be accepted especially for foreign investors because of this they prefer to keep their funds on the capital market of other countries or other investment instruments.
Investors who originally invested in Indonesia will prefer to keep their funds because it has a smaller risk compared to the risk when investing in China.4. The influence of the Straits Times Index on the Composite Stock Price Index (JCI) From Indonesia's export data, it shows that Indonesia's largest exports to ASEAN countries are the largest to Singapore and with the free trade agreement.
However, the Indonesian economy, which is currently experiencing growth and is supported by domestic investors who have started to control the proportion of share ownership on the Indonesia Stock Exchange (IDX), has made the STI Index, which is a reflection of Singapore's trade, less in the eyes of Indonesian investors as a reference to see the direction of movement.stock prices in Indonesia.Plus, during this research, there was an economic situation that was seen as more likely to affect the JCI, such as the trade war, and the policies of the American central bank.
Based on this, it can explain the results of this study which show that STI does not affect the JCI.

The influence of The Financial Times Stock Exchange 100 (FTSE 100) index on the Composite
Stock Price Index (JCI) This index represents the performance of all companies listed on the main market of London Stock Exchange (LSC) which have passed both selectively and directly.This index represents 98% of the UK market capital.This index is considered a measure of the best performance in the London equity market.
The results of this study state that the FTSE 100 index does not affect the JCI because of other influences that are considered by investors, especially foreign investors to invest their funds in a country's capital market.
After the announcement of the results of the Brexit referendum, global financial markets experienced a decline in the composite stock index in almost all countries on June 24, 2016.This seems to have a continued impact on the foresight and against the weather.However, this situation did not last long, several stock indices began to recover, where the strengthening of the index occurred in: Thailand, the Philippines, China, Indonesia, Indonesia, Australia, and Vietnam.This shows that the information circulating about Brеxіt does not have a significant impact on Indonesia's economy due to the sudden turmoil.
The FTSЕ 100 Index has no effect on the HSG.Because the UK does not invest too much in the form of stocks, but in the form of real investments.Іnvеstment made by the UK in Іndonеsіa is more active in the field of chemical industry, metal goods, mining, rеal еstatе, regional іndustrі, transportatіon and communіcatіon, food, trade, hotеl and rеstaurant; and еlеctronic and services (Bery & Worokinasih, 2018).6.The influence of the Kuala Lumpur Composite Index (KLCI) on the Composite Stock Price Index (CSPI) The Kuala Lumpur Composite Index (KLCI) is an indicator of stock price movements on the IDX.This index covers the price movements of all common and preferred shares listed on the Malaysian Stock Exchange.
The results of this study indicate that the Kuala Lumpur Composite Index (KLCI) has a significant effect in a positive direction on the JCI.As a country that has the closest position to Indonesia, Indonesia has trade relations that influence each other between the two countries.Likewise, the capital markets of the two countries are interconnected, in the investment sector, Malaysia itself is one of the countries with a high investment value for Indonesia.This is a positive sentiment for the Indonesian capital market.

Table 3 Autocorrelation Test Breusch -Godfrey Serial Correlation LM Test
In the table above, it is known that the value of Obs*R-squared is 3.879815 and Prob.Chi-Square 0.1437 is large from a=0.05.Thus it can be concluded that the model is free from the problem of autocorrelation.
Based on table 4 above, the calculation of multiple linear regression analysis using the Eviews 10 program got the following results:

Y= 10.74468 + 0.094708 X1 -0.083541 X2 -0.026287 X3 + 0.170890 X4 + 0.167142 X3 + 1.444688 X4
Based on the table above, the F-count value is 4.305883 with a significance = 0.000745.Based on the provisions of the F test where the F-count = 0.05, it can be concluded that the Dow Jones Index, Nikkei 225, Shanghai Stock Exchange Composite Index, Straits Times Index, The Financial Times Stock Exchange 100, and the Kuala Lumpur Composite Index simultaneously affect the Price Index.Joint Stock (JCI).Thus H1 is accepted. .The results of the analysis show that the variable Shanghai Stock Exchange Composite Index has no effect with a significance value of 0.8243 which is greater than a significance level of 0.05.While the regression coefficient of the Shanghai Stock Exchange Composite Index is -0.026287 and the t-count is -0.223087.Thus H4 is rejected.d.The results of the analysis show that the variable Singapore Straits Times Index does not affect the Jakarta Composite Index (JCI).With a significance value of 0.5443, it is greater than a significance level of 0.05.While the regression coefficient is 0.170890 and the tcount value is 0.610289.Thus H5 is rejected.e.The results of the analysis show that the variable The Financial Times Stock Exchange 100has no effect on the Composite Stock Price Index (IHSG).With a significance value of 0.1892, it is greater than a significance level of 0.05.While the regression coefficient is 0.167142 and the t-count value is 1.330237.Thus H6 is rejected.f.The results of the analysis show that the variables and the Kuala Lumpur Composite Index have a significant positive effect on the Composite Stock Price Index (JCI).With a significance value of 0.0154 which is smaller than a significance level of 0.05.While the regression coefficient is 1.444688 and the t-count value is 2.506580.Thus H7 is accepted.
1. Simultaneous Test (f-test) b.The results of the analysis show that the Nikkei 225 index variable has a significant and negative effect on the Stock Price Index (CSPI).With a significance value of the Nikkei 225 index of 0.0259, it is smaller than the significance level of 0.05.While the regression coefficient is -0.083541 and the t-count is -2.293083.Thus H3 is accepted.c