Impact of rupiah exchange rate and coal prices on stock price in Indonesia’s Energy Sector

Abstract

Purpose: This study examines the impact of the Rupiah exchange rate and coal prices on stock prices in coal industry energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2020 period.

Methods: A quantitative approach was employed, using panel data regression analysis to assess the relationship between these variables. The study population includes all coal industry energy sector companies listed on the IDX, with a sample of five companies selected through purposive sampling over 24 months, resulting in 120 observations. Data processing was conducted using EViews 10.

Findings: The findings reveal that both the Rupiah exchange rate and coal prices significantly influence stock prices. Furthermore, the Rupiah exchange rate and coal prices collectively explain 28.10% of the variations in stock prices, indicating that other factors also contribute to price fluctuations.

Practical Implications: These results provide valuable insights for investors, policymakers, and financial analysts, highlighting the importance of macroeconomic factors in stock price movements within the energy sector. Understanding these dynamics can help stakeholders make more informed investment and risk management decisions.