Stock Market Responses to Covid-19 Pandemic and Monetary Policy in Indonesia: Pre and Post Vaccine


  • Ahmad Albar Tanjung Sekolah Tinggi Ilmu Manajemen Sukma, Sumatera Utara, Indonesia
  • Dede Ruslan Universitas Negeri Medan, Sumatera Utara, Indonesia
  • Irsad Lubis Universitas Sumatera Utara, Sumatera Utara, Indonesia
  • Ikbar Pratama Universitas Medan Area, Sumatera Utara, Indonesia


Covid-19; Monetary Policy; Stock Market, ARDL bound


This study seeks to determine how the Indonesian stock market reacts to COVID-19, monetary policy, and other macroeconomic variables. The data used is, therefore, from March 2020 to December 2021. First, using the ARDL bounds testing approach, the influence of COVID-19 on the stock market was analyzed before and after the public vaccination of the stock market. This study then explores the stock market's reaction to monetary policy changes. According to the findings of this analysis, Covid-19 had a significant impact on the Indonesian stock market before vaccination, but after vaccination, it had no significant effect on the Indonesian stock market. During the COVID-19 period, monetary policy substantially impacted the Indonesian stock market. This is the first study to assess the influence of COVID-19 on Indonesian stock market performance before and after immunization. The performance of the stock market improves after receiving the vaccine. This demonstrates that the vaccine was effective. In addition to considering tiny towns' health and economic elements, researchers urge that the government create additional measures. In addition, expansionary monetary policy must employ the concept of prudence so as not to precipitate another crisis.