The Effects of VIX, Oil Prices, and Exchange Rates on Indonesia’s Stock Market Performance, 2021–2024

DOI

10.2991/978-94-6239-670-8_8How to use a DOI?

Keywords

VIX; Oil Prices; Exchange Rate; IHSG; Stock Market Performance

Abstract

This study examines the impact of global and domestic factors—namely the Volatility Index (VIX), crude oil prices, and the exchange rate—on Indonesia’s stock market performance (IHSG) during the 2021–2024 period. Using monthly time-series data and the Ordinary Least Squares (OLS) method, this research analyzes how global risk sentiment and macroeconomic variables influence IHSG movements. Diagnostic tests confirm that the model satisfies classical assumptions, and cointegration analysis indicates a long-term equilibrium relationship among the variables. The results reveal that only the exchange rate significantly affects IHSG, showing that Rupiah depreciation leads to lower stock performance. Meanwhile, VIX and oil prices exhibit statistically insignificant effects, suggesting limited transmission of global shocks to the Indonesian market. The findings highlight that IHSG is more sensitive to domestic currency fluctuations than to external volatility or commodity price changes. This study contributes to the understanding of financial interdependence in emerging economies and underscores the importance of maintaining exchange rate stability to support investor confidence and capital market resilience in Indonesia.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits any noncommercial use, sharing, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if you modified the licensed material. You do not have permission under this license to share adapted material derived from this chapter or parts of it.

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TY  - CONF
AU  - Alexander Robert
AU  - Kenneth Uli Djaja
AU  - Albert Sutojo
AU  - Karel Chandha Kumaro
PY  - 2026
DA  - 2026/05/13
TI  - The Effects of VIX, Oil Prices, and Exchange Rates on Indonesia’s Stock Market Performance, 2021–2024
BT  - Proceedings of the fourteenth International Conference on Entrepreneurship and Business Management 2025 (ICEBM 2025)
PB  - Atlantis Press
SP  - 92
EP  - 106
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-670-8_8
DO  - 10.2991/978-94-6239-670-8_8
ID  - Robert2026
ER  -