THE INFLUENCE OF JSX COMPOSITE INDEX, BI RATE AND INFLATION ON UNIT LINK INVESTMEN

Abstract

Unit link insurance product has become a trend in the past few years. More people are buying this type of insurance to fulfill their insurance needs because of its flexibility and its feature, which allows the insurance policy to have cash value, giving people the ability to use it not only as a means to protect themselves, but also to invest. The objective of this research is to see whether unit link investment, especially the mutual fund investment is affected by JSX composite Index (IHSG), BI rate and inflation rate. The researcher hopes that it will give a good insight to both insurance sales force and the general public a better understanding about the unit link product. This research uses quantitative research as a means to achieve its objectives. The data used for this research are secondary in nature and were gathered from the insurance company website, Bank Indonesia and also other sources from the internet. The period of the research will be between the years 2007 to 2010. This research only covers one type of unit link investment from one company from 2007 to 2010 The research will be using multiple linear regression from Statistical Packages for Social Sciences 17 as a means to calculate data. From the calculation, it can be concluded that collectively, JSX Composite Index, BI rate and inflation rate have significant effect on unit link price.