THE COMPARISON OF CAPITAL MARKET PERFORMANCE IN TWO ERAS OF GOVERNMENT: 6TH AND 7TH PRESIDENTIAL ERA (2004-2009 AND 2014-2018)

Abstract

Capital market has influence toward the economic growth of Indonesia, therefore the role of capital market in economic is very important. To see the development of capital market can be measured by its performance from time to time. This study measured the capital market performance of Indonesia in two eras of government. Variables used were Jakarta composite index (IHSG), market capitalization (MC), trading volume activity (TVA), and foreign net purchases (FNP). The sampling technique used in this research was purposive sampling. Sample of this research is the capital market in government era of 6 th president (period 1) from October 2004 until October 2009 and 7th president in Indonesia from October 2014 until November 2018. This research used hypothesis testing of two means. The results show if there is a difference of IHSG, MC, TVA, and FNP in two eras of government. While for the sectoral index, there is a difference of finance index, infrastructure index, agriculture index, basic industry index, manufacture index, consumer goods index, property index, trade and service index, and miscellaneous industry index in two eras of government, but for mining index does not have difference in two eras of government.