Preprint / Version 1

Impact of The People’s Business Credit Program on the Jakarta Composite Index


  • Issa Sengendo Innovation Academy Charter School



Jakarta Composite Index, People’s Business Credit Program, Finance


How do Indonesian People’s Business Credit Loans impact the movement of the Jakarta Composite Index? The Jakarta Composite Index (JCI) is an index tracking the 895 securities listed on the Indonesia Stock Exchange (IDX). As of July 2023, according to data from, the official market cap of the Indonesia Stock Exchange is $670 Billion. As of December 2020, the IDX market cap accounted for 45.2% of the country’s nominal Gross Domestic Product (GDP). In this study, the correlation between the Jakarta Composite Index and the People’s Business Credit loans is examined thoroughly. I hypothesize that the increase in loans in the business ecosystem increases the overall value of enterprises. This study involves the implementation of linear regression to analyze the data presented and formulate a conclusion. Various websites were used in the sourcing process of the data pertaining to the People’s Business Credit Loans, including those of the OECD, the Central Bank of Indonesia, and Bank Negara Indonesia. I find that the implementation of the People’s Business Credit Program does have an effect on the Jakarta Composite Index. Data resulting from the regression shows that there is a noticeable r-squared between the number of loans issued and the price of the Jakarta composite index, at around 32%.


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OECD. “SME and Entrepreneurship Policy in Indonesia 2018.” OECD, 19 September 2023.