THE IMPACT OF COVID-19 ON THE INDONESIAN ENERGY STOCK PRICE INDEX: EVIDENCE FROM STOCKS WITHIN THE IDXENERGY INDEX

• Main Author: Estevan, Emmanuel
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75414
• Institution: Institut Teknologi Bandung

The recent years have been rough for industries since the world has been struck by the COVID- 19 pandemic. The stock market is no exception to the negative impact of this pandemic. Just like other industries, the energy industry sector is also affected by the negative effects of the COVID-19 pandemic. It can be seen by the dropping price of energy commodities such as coal, oil, and gas. Besides the COVID-19 pandemic, Indonesia also sets a goal of shifting energy consumption from fossil energy to renewable energy. This causes uncertainty in the energy stock performance in the future. The data used for this research are from 73 companies listed in IDXENERGY from 2018 - 2021, with a total of 911 observations using panel data regression to determine the effect of the COVID-19 pandemic towards stock prices in the IDXENERGY index and what factors significantly affect these stocks. The author found out that only EPS and NPM are significant and positive towards stock prices in IDXENERGY index, while the rest of the variables (ROE, DER, SIZE) including COVID-19 are not significant towards stock prices in IDXENERGY index. The reason somehow the COVID-19 pandemic doesn’t significantly affect the stock prices in IDXENERGY is that in the long term every business activity starts to run normally again as it was before the pandemic occurred. Also, in January 2021 the government has carried out a COVID-19 vaccination program in Indonesia.