ANALYSIS THE EFFECT OF OIL PRICES AND GOLD PRICES TOWARD THE JAKARTA COMPOSITE INDEX (PERIOD JANUARY 2009 - JUNE 2012)

Abstract

This study essentially to analyze the effect of oil price and gold price toward Jakarta Composite Index. Nowadays, more people are investing their money in many kind of portfolio to avoid the inflation of money. The objective of this study is to determine how big the effect of oil price and the price of gold on stock indices in Indonesia, namely Jakarta Composite Index. The writer hopes that it will be good insight to the investor to gain a better understanding what kind of factor that can influence the Jakarta Composite Index. This research uses quantitative research as a means to achieve its objectives. The data that used for this study are secondary data that being available through the website and also other sources from the internet. The period of the research is in between the January 2009 until June 2012. The research is using multiple linear regression to identify the influence of oil price and gold price toward Jakarta Composite Index. Based on the multiple linear regression analysis, all of independent variable has significance influence toward Jakarta Composite Index, which are oil price and gold price has a positive impact toward Jakarta Composite Index.