EFFECT OF BANK INDONESIA SHARIA CERTIFICATES, DOMESTIC INTEREST RATES AND RUPIAH EXCHANGE RATES ON INDONESIA SHARIA STOCK INDEX (ISSI)

This study aims to determine the effect of Bank Indonesia Syariah Certificates (SBIS), Domestic Interest Rates and Rupiah Exchange Rates on the Indonesian Syariah Stock Index (ISSI) during the 2016 – 2020 period, which obtained as many as 60 data in this study. The sampling technique used in this study is non-probability sampling, namely by using saturated sampling, where all members of the population are used as samples. The method used in this research is descriptive statistical analysis, classical assumption test, multiple linear regression analysis and hypothesis testing by using the EViews version 10 for Windows. The results showed that the data met classical assumptions such as normal distribution data, there was no multicollinearity, no heteroscedasticity and no autocorrelation. From the results of the partial hypothesis, Bank Indonesia Syariah Certificates (SBIS) and Domestic Interest Rates have an influence on the Indonesian Syariah Stock Index (ISSI). Meanwhile, the Rupiah Exchange Rate has a negative effect on the Indonesian Sharia Stock Index (ISSI). Based on the results of the hypothesis simultaneously shows that Bank Indonesia Syariah Certificates (SBIS), Domestic Interest Rates and Rupiah Exchange Rates have an influence on the Indonesian Syariah Stock Index (ISSI).


INTRODUCTION
Sharia shares are securities in the form of shares that do not conflict with sharia principles in the Capital Market. The definition of shares in the context of sharia shares refers to the definition of shares in general which are regulated in laws and other OJK regulations. The Indonesian capital market recognizes two categories of sharia shares (Setyani, 2017). First, shares declared to meet the selection criteria for sharia shares in accordance with OJK regulation No. 35/POJK.04/2017 concerning Criteria and Issuance of Sharia Securities Lists; second, shares listed as sharia shares by issuers or sharia public companies in accordance with OJK regulation No. 17/POJK.04/2015 (www.idx.co.id).
Shares are securities that are owned by a company. This means that the shareholder is the company's owner; the more shares he owns, the more influence he has in the company proportional to the number of shares he holds (Yuniati, 2018;Siregar, 2018). The form of percentage of the principal per unit of time which is referred to as a percentage of the amount lent. The interest rate is a measure of the source price used by the debtor which is paid to the debtor.
Fixed interest rates are loan interest rates that do not change throughout the loan period (Mankiw, 2020), whereas floating interest rates are loan interest rates that change during the loan period by following a certain reference rate (Novindra, n.d.), such as LIBOR (Lodon Interbank Offered Rate), where is the calculation method using a margin addition system to the reference rate (Subagyo et al., 2002).
Unreasonable increases in interest rates will make it difficult for businesses to pay interest and commitments, because high interest rates would raise the burden on the company, reducing profits immediately (Kasmir, 2016). An increase in loan interest rates is extremely detrimental to any provider because it increases credit interest expenses and reduces net income (Kartika, 2019). A fall in net income signifies a decrease in earnings per share, which leads to a decrease in stock market share prices (Kamal & Thamrin, 2021) (Faroh, 2017). Then again, a fall in interest rates on loans or deposits raises stock market prices. As a result, it will be a factor for investors to consider when buying or selling shares that have an impact on the development of the Indonesian Sharia Stock Index (ISSI) (Usnan, 2018).
The weakening of the rupiah against foreign currencies, which will have an impact on the company's economy, is another macroeconomic aspect that can affect the development of the Indonesian Sharia Stock Index. Companies who have international debt and import goods will see an increase in production costs and losses as a result of the difference in exchange rates against foreign currencies (Exchange). The company's profit will suffer as a result. A fall in profits will result in a decrease in investor confidence in the firm or issuer in question, lowering the stock price. Because of the amount of companies affected by the rupiah exchange rate, the Indonesian Sharia Stock Index (ISSI) will fall (Anwar, 2020).
Research conducted by Niza (2018) Bank Indonesia Sharia Certificate (SBIS) and world oil prices have a significant simultaneous effect on the Indonesian Sharia Stock Index (ISSI). However, Safitri (2019) highlight that the Bank Indonesia Syariah Certificate (ISSI) has no significant effect on the development of the Indonesian Sharia Stock Index (ISSI). Meanwhile, Widyasa (2018) concluded that the domestic interest rate has a significant effect on the Indonesian Sharia Stock Index (ISSI). However, according to the results of research by (Wibowo, 2019), interest rates have a negative effect on the Indonesian Sharia Stock Index (ISSI). As noted by Saputra (2017)  According to Bhattacharya (1979) in the signaling theory there is a theory with the essence of how signals affect the rise and fall of stock prices in the capital market. According to (Morris, 1987) argues that signal theory explains the reasons why companies provide useful information for the capital market. An information can be said to be useful if the information is actually or seems to be used in decision making by the intended user, which is indicated by an association between the event and the return, price or volume of shares in the capital market (Suwardjono, 2005).
Based on the above understanding, signal theory relies on the sensitivity of investors to properly digest whether an information gives a positive or negative signal to their investment. Information is an important element for investors because information provides an overview of the state of the capital market for both past, present and future conditions.
To make informed investment decisions, investors in the capital market need access to up-to-date, relevant, accurate, and timely information, such as Bank Indonesia Syariah Certificates (SBIS), domestic interest rates, and Rupiah exchange rates.
After investors receive or receive information, investors first interpret and analyze the information, how quickly investors can interpret information depending on the type of investment. The faster investors can interpret information, the faster the market reaction will occur, on the contrary, the longer investors can interpret the information, the longer the market reaction will take. Therefore, investors are required to understand how each information is a signal for decision making (Hartono, 2005).

Indonesian Sharia Stock Index (ISSI)
The performance of all equities that are included on the sharia securities list is reflected in one index, and that index is known as the Indonesian Sharia Stock Index. The Indonesian Sharia Stock Index (ISSI) is a composite index that measures the performance of sharia shares that are listed on the IDX. It was introduced on May 12, 2011. The Indonesian Islamic Stock Index (ISSI) is a measure of how well the Indonesian Islamic stock market performs. Constituents of the ISSI are all sharia shares that are traded on the IDX and are included on the Sharia Securities List (DES) that is compiled and distributed by the OJK. Because of this, sharia shares that are included in the ISSI are not chosen by the IDX.
Following the DES review schedule, ISSI constituents are re-selected twice a year, in May and November. As a result, sharia shares are always exiting or entering ISSI constituents during each selection period. The ISSI calculation technique is similar to other IDX stock index calculation methods, in that it uses the weighted average of market capitalization as the base year for ISSI calculations, with December 2007 as the base year.
In an analogy, ISSI is similar to the JCI (Joint Stock Price Index). If the JCI reflects the overall performance of shares on the Indonesia Stock Exchange, the ISSI reflects the performance of all sharia shares on the IDX. So, ISSI is the JCI of the Islamic Capital Market. (www.idx.co.id).

Bank Indonesia Sharia Certificate (SBIS)
Bank Indonesia regulations state that Bank Indonesia Syariah Certificates (SBIS) are securities based on sharia principles for short term in rupiah currency issued by Bank Indonesia. The characteristics of SBIS are as follows: a) Using the ju'alah contract; b) Units of Rp. 1.000.000,00 (one million rupiah); c) Minimum period of 1 (one) month and a maximum of 12 (twelve) months; d) Published without scrip (scripless); e) Can be used as collateral to Bank Indonesia; f) Cannot be traded on the secondary market.
The mechanism for issuing SBIS is through an auction involving a Sharia Commercial Bank (hereinafter referred to as BUS) or Sharia Business Unit (hereinafter referred to as UUS) or a broker acting for and on behalf of the BUS/UUS. BUS or UUS, both as direct participants and indirect participants, must meet the requirements Financing to Deposit Ratio (FDR) determined by Bank Indonesia (Abdullah, 2008).
SBIS can be repurchased with Bank Indonesia, Repo SBIS based on the qard principle followed by rahn. BUS or UUS must first sign the SBIS Collateral Agreement in the Context of Repo SBIS. Repo SBIS is subject to Repo fee. With the issuance of this SBIS instrument, SBIS has the same concept as SBI, only that the issuance and trading is carried out based on sharia principles so that it must be free of interest/usury. Prior to PBI Number 10/11/PBI/2008, SBIs issued and traded based on sharia principles were called Bank Indonesia Wadiah Certificates (hereinafter referred to as SWBI), but now the term SWBI has been replaced by the term SBIS.
The only parties that can have SBIS are sharia banking which includes Sharia Commercial Banks (BUS) and Sharia Business Units (UUS) that meet the requirements Financing to Deposit Ratio (FDR) determined by BI. Sharia banks wishing to obtain SBIS can apply for SBIS purchases directly to BI and/or through rupiah and foreign exchange money market brokerage firms. SBIS issued by Bank Indonesia uses a Ju'alah contract and through an auction mechanism. Ju'alah contract is a promise or commitment (iltizam) to provide a certain reward ('iwadh/ju'l) for the achievement of results (natijah) determined from a job. SBIS is distinguished from SBI because SBIS must be free from the element of interest (usury) which is classified as forbidden according to sharia principles (Huda & Nasution, 2014).

Interest Rate Level
According to Jogiyanto (2000), the interest rate is expressed as a percentage of the principal per unit of time which is referred to as a percentage of the amount lent. The interest rate is a measure of the source price used by the debtor which is paid to the debtor. Interest rates basically have two meanings according to the review, namely for banks and for companies. For Banks, interest is an income or an advantage on borrowing money by entrepreneurs or customers. For entrepreneurs, interest is considered a cost of production or cost of capital. Based on the statement above, it can be concluded that the interest rate is the price that must be paid by the borrower of funds based on the agreed percentage.
Excessive ethnic group interest affects the present value of the company's cash flows, so investment opportunities are no longer attractive. High interest rates also increase the cost of capital that must be paid by the company. The rate of return required by investors from an investment will increase due to excessive interest rates. A negative signal to stock prices is excessive interest rates. The requirement for investing in a stock is the interest rate. Investors withdraw their investments in stocks and move them to investments in the form of savings or deposits due to rising interest rates (N. Valentika et al., 2021).
Interest rates dependent on the loan of money, which is usually expressed as a percentage of the money lent. Interest rate is the interest rate expressed in percent, for a certain period of time (monthly or annually) (Rahmawati & Dalimunthe, 2022).
Interest rates can also be grouped into fixed interest rates and floating interest rates, fixed interest rates are loan interest rates that do not change throughout the credit period, while floating interest rates are interest rates that change during the credit period by following a certain reference rate such as LIBOR (Lodon Interbank Offered Rate) where the calculation method is using a margin addition system to the reference rate.
At the same time, the high and low deposit interest rates also influence the decision of the community to save their money in the bank. If the bank lowers the deposit interest rate, fewer people or companies will be encouraged to deposit their money in the bank, making it more difficult for banks to raise funds.

Rupiah Exchange Rate
Exchange rates (currency exchange rate) or what is known as a currency rate is a note (quotation) of the market price of a foreign currency in the price of the domestic currency or reciprocal, namely the price of the domestic currency in a foreign currency. Currency exchange rates represent the level of exchange rates from one currency to another and are used in various transactions, including international trade transactions, tourism, international investment or short-term money flows between countries that cross geographical boundaries or legal boundaries.
Foreign exchange rate can be defined as the price of one country's currency relative to another country's currency. Because this exchange rate includes two currencies, the balance point is determined by the supply and demand sides of the two currencies, or in other words the exchange rate is the amount of money of a certain currency that is exchanged for one unit of another country's currency (Ekananda & Sallama, 2015) CURRENT

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In each country, to show the price requires a currency that must adjust to the currency of other countries or partner countries which is referred to as the rate. Chou (2000) in saying that the condition of fluctuations in the exchange rate shows the amount of volatility, where the greater volatility indicates the movement of the exchange rate is getting bigger, namely the occurrence of appreciation/depreciation (N. V. Valentika et al., 2020).
There are six exchange rate systems based on the amount of intervention and foreign exchange reserves owned by a country's central bank that are used by many countries in the world (Yuniarti, 2016) namely: 1. Fixed Exchange Rate System. In this system, the monetary authority always intervenes in the market to maintain the exchange rate of its own currency against a certain foreign currency. These interventions require relatively large foreign exchange reserves. 2. Free Floating Exchange Rate System. In contrast to the fixed system, this system is at the pole. Because the monetary authority does not need to intervene in the market in this system, it does not require huge foreign exchange reserves. This system is still in use in Indonesia today. 3. Wideband System. In this system the exchange rate is allowed to float or fluctuate between two points, the highest and the lowest. If economic conditions cause the exchange rate to move beyond the upper and lower limits, the monetary authority will intervene by buying or selling rupiah so that the rupiah exchange rate is between the two predetermined points. 4. Managed Float System. In this system the monetary authority does not determine to maintain a certain exchange rate. However, the monetary authority continues to carry out interventions based on certain considerations, such as depleting foreign exchange reserves. 5. Peg Crawling System. The monetary authority in this system associates the domestic currency with several foreign currencies. The exchange rate is periodically changed gradually in small percentages. This system was used in Indonesia in the period 1988-1995. 6. Peg Crawling System. The monetary authority in this system associates the domestic currency with several foreign currencies. The exchange rate is periodically changed gradually in small percentages. This system was used in Indonesia in the period 1988-1995. 7. Adjustable Peg System. In this system, the monetary authority is not only committed to maintaining the exchange rate, but also has the right to change the exchange rate if there is a change in economic policy.

RESEARCH METHOD
The Indonesian Sharia Stock Index is an index that reflects the performance of all stocks listed on the sharia securities list. The Indonesian Sharia Stock Index (ISSI), which was launched on May 12, 2011, is a composite index of sharia shares listed on the IDX. ISSI is an indicator of the performance of the Indonesian Islamic stock market. ISSI constituents are all sharia shares listed on the IDX and included in the Sharia Securities List (hereinafter referred to as DES) issued by the OJK. This means that the IDX does not select sharia shares that are included in the ISSI.
ISSI constituents are all shares that have joined the Sharia Securities List (DES) and are listed on the IDX where currently the number of ISSI constituents has more than 200 shares. ISSI is used as a means to facilitate and attract Muslim investors in the selection of investments in the capital market which are often doubtful of its halalness, although not all sharia stock investors are Muslims. In a nutshell, the Islamic capital market uses principles, assumptions, procedures, instruments, and applications that are based on Islamic values sourced from the Al-Quran and As-Sunnah which are then presented in the form of a DSN-MUI Fatwa related to the Islamic capital market. The fatwa was then applied by the supervisory agency, namely Bapepam-LK and the executor, namely the Indonesia Stock Exchange, issuers and investors.  Table 1 it can be seen that the standard deviation value of 15.73168 is smaller than the mean of 174.0383 which indicates the low variation between the maximum value and minimum value during the observation period or in other words there is no large enough gap from the Indonesian Sharia Stock Index (ISSI) lowest and highest.

RESULT AND DISCUSSION
Likewise, it can be seen that the variable Bank Indonesia Syariah Certificate (SBIS) has a minimum value of 6275.000 and a maximum value of 14415.00 with a standard deviation of 1971.716 which is smaller than the mean of 10814.00 which indicates the low variation between the maximum and minimum values during the observation period or there is no sufficient enough gap between the lowest and the highest Bank Indonesia Syariah Certificates (SBIS).
Furthermore, it can be seen that the Domestic Interest Rate variable has a minimum value of 0.000000 and a maximum value of 6.000000 with a standard deviation of 1.259960 which is smaller than the mean of 4.675,000 which indicates the low variation between the maximum and minimum values during the observation period or in other words there is no a sizeable gap between the lowest and highest Domestic Interest Rates.
Moreover, it can be seen that the Rupiah Exchange Rate variable has a minimum value of 13017.00 and a maximum value of 15867.00 with a standard deviation of 628.5229 which is smaller than the mean of 13931.22 which indicates the low variation between the maximum and minimum values during the observation period or in other words there is no gap which is quite large from the lowest and highest Rupiah Exchange Rates.

Classic Assumption Test
1. Normality Test  Table 2 Multicolinearity Test Results

Multicollinearity Test
Based on Table 2, it is known that the value of the Centered variance inflation factor (VIF) shows a number less than 10.00, so it can be concluded that there is no multicollinearity.
3. Heteroscedasticity Test Table 3 Heteroscedasticity Test Results Based on Table 3 of the test data above, it can be concluded that this study does not have heteroscedasticity. Because the heteroscedasticity test can be seen that the probability is 0.145890 or greater than 0.05 (significance of prob > 0.05), hence the model does not contain heteroscedasticity. (Sugiyono, 2007) Table 4 Autocorrelation Test Results

Autocorrelation Test
Based on Table 4, the Durbin-Watson number is 0.532968. This value indicates that the Durbin-Watson value is between -2 and 2 (-2 < 1,000 < 2) and based on the decision criteria it can be concluded that there is no autocorrelation.

Regression Test
Regression test can only be done if the data under study is stationary. After the data meets the stationarity test, it is necessary to select a regression model. The following are the results of the regression model specifications.  Basis for decision making F test (simultaneous) based on criteria. If the value of Fstatistic > Ftable, the independent variable simultaneously affects the dependent variable and vice versa. If the value of Sig <0.05, the independent variable simultaneously has a significant effect on the dependent variable. Based on Table 6, the Fstatistic value in the research model is 17.89243 with a significant level of 0.000b. The value of Sig is 0.05 which indicates that the independent variables simultaneously have a significant influence (0.000b <0.05) on the Indonesian Sharia Stock Index (ISSI) at a significance of 5%. Statistical results Ftable at the 5% significance level with the value of Df1 is 3 and Df2 is 56 and obtained Ftable of 2.77. From the comparison results, it can be seen that the value of Fstatistic > Ftable (17.89243 > 2.77), then it can be concluded that H0 is rejected and H1 is accepted, which means simultaneously the Bank Indonesia Sharia Certificate (SBIS), Domestic Interest Rate and Rupiah Exchange Rate have a significant effect on the Indonesian Sharia Stock Index (ISSI).

T Test (Partially)
T test is used to determine the effect of each independent variable on the dependent variable, namely the effect of Bank Indonesia Syariah Certificates (SBIS), Domestic Interest Rates and Rupiah Exchange Rates on the Indonesian Syariah Stock Index (ISSI). The T table value obtained based on this study is n (number of observations) k (number of research variables) df = nk = 60 -4 = 56. The significance value used is 5% or 0.05. So, the value of Ttable is 2.00324. From the results of calculations using EViews Version 10 For Windows, it can be seen in the following table:  Table 7, the results obtained from the Rupiah Exchange Rate (X3) variable against the Indonesian Sharia Stock Index (ISSI), where the value Tstatistic = -4.803688 which means Tstatistic < Ttable (-4.803688 < 2.00324) the value is greater than T table with a significance of 0.000 < 0.05 which indicates a level of significance that is smaller than the level of error. Based on the decision criteria H0 accepted and H3 was rejected because (Tstatistic < Ttable). From the test results, it can be concluded that partially the Rupiah Exchange Rate variable has no effect on the Indonesian Sharia Stock Index (ISSI) in a negative direction.

Coefficient of Determination Test (Adjusted R 2 )
The coefficient of determination test was conducted to find out how much the independent variable's ability to explain the dependent variable was. The coefficient of determination can be seen in the Model Summary table b. Adjusted R Square is used for multiple linear regression because the number of independent variables used in this study is more than two independent variables. This shows that when the Bank Indonesia Sharia Certificate (SBIS) increases, the Indonesian Sharia Stock Index (ISSI) will decrease. The decline in stock prices is influenced by macroeconomic factors when Islamic banks experience excess liquidity of funds obtained from Third Party Funds (TPF), then SBIS is one of the alternative investment instruments as a distribution of funds. From the distribution of these funds, Islamic banks will receive SBIS rewards which refer to the discount rate. When the rewards obtained by Islamic banks in investing in SBIS are large, of course the profits will be obtained by Islamic banks. This is able to attract investors in the capital market to switch to investing in Islamic banks rather than in the capital market. This shows that if there is an increase in interest rates, then the movement of stock prices will decrease, otherwise if there is a decrease in interest rates, then the stock price will rise. The higher the banking interest rate, the more investors will divert their investment to investments in banking, bonds or fixed income financial assets. Because investors reduce their stock portfolio by releasing shares, the supply of shares on the stock exchange increases and will subsequently cause a decrease in the price of these shares.

Rupiah Exchange Rate on Indonesian Sharia Stock Index (ISSI)
In this study, based on a partial test (T test) the Unstandardized Coefficient value of the Rupiah Exchange Rate is -4.803688 with a significance of 0.000 and Tstatistic is -4.804 and Ttable is 2.00324. Thus, the results of the Rupiah Exchange Rate (X3) variable against the Indonesian Sharia Stock Index (ISSI) (-4.803688 > 2.00324) the value is greater than T table with a significance of 0.000 < 0.05 which indicates a higher level of significance smaller than the error rate. Based on the decision criteria H0 is accepted and H3 is rejected because (Tstatistic > Ttable). From the test results, it can be concluded that partially the Rupiah Exchange Rate variable has a negative effect on the Indonesian Sharia Stock Index (ISSI) in a negative direction.
The results of this study are in line with research conducted by Setyani (2017) which states that the exchange rate variable partially has no significant effect on the Indonesian Sharia Stock Index (ISSI). This shows that aif there is an increase in the rupiah exchange rate it will cause stock prices to fall and trigger investors to sell their shares will have a negative impact on the Indonesian Sharia Stock Index (ISSI) in the capital market.

Conclusion
Based on the results of the analysis of the Effect of Bank Indonesia Syarah Certificates (SBIS), Domestic Interest Rates and Rupiah Exchange Rates on the Indonesian Sharia Stock Index (ISSI) using multiple linear regression, the researchers can draw the following conclusions: 1. Simultaneously or together that Indonesian Sharia Bank Certificates (SBIS), Domestic Interest Rates and Rupiah Exchange Rates have a significant influence on the Indonesian Sharia Stock Index in a positive direction. 2. Partially, the variable Bank Indonesia Syariah Certificate (SBIS) has an influence on the Indonesian Syariah Stock Index (ISSI). 3. Partially, the Domestic Interest Rate variable has an influence on the Indonesian Sharia Stock Index (ISSI). 4. Partially, the Rupiah Exchange Rate variable has a negative effect on the Indonesian Sharia Stock Index (ISSI) in a negative direction.

Research Limitations
In this study, several limitations are experienced by researchers, such as: 1. The sample for this research is the Indonesian Sharia Stock Index (ISSI) which is listed on the IDX and BI for the 2016-2020 period so that the research results cannot be generalized.