Do pandemic COVID 19 and business cycle influence the Indonesia composite index?

The impact of the Covid 19 pandemic on Indonesian economy was worse than global financial crisis in 2008. We can see business cycle from contraction economic growth, volatility exchange rate, and inflation. shocks to these cycles could create systemic risks influence system stability. Financial stability is more sensitive changes one macroprudential indicators, namely Indonesia Composite Index (ICI). This study will examine effect ICI. research conducted using quarterly secondary data 2008-2021. obtained Bank Indonesia. model used Auto Regressive Distributed Lag (ARDL) model. purpose this long-term short-term relationships between variables studied. results show that such as; inflation have a relationship ICI both short long term. decline growth during difficult avoid. However, government must continue accelerate so it does not sharply crisis. Monetary authorities also maintain rate fluctuate unsteadily.