The Effect of the HPP Law on Market Reaction: A Study on the Indonesian Stock Exchange

This study aims to examine the market reaction tax reform. Tax reform was carried out by government on issue of post-covid economic recovery and responding environmental changes. policy has a new regulation in Indonesia form carbon tax, an increase VAT, income tax. research is event research. The population this companies listed Stock Exchange October 7, 2021. data are taken from Yahoo Finance, totalling 753 companies. sampling method used purposive method, with sample Kompas 100 index each company sector total 9 sectors observation period 10 days, 5 3 days before after ratification (-10.10), (-5.5), (-3.3). reacted reform, there significant abnormal return (p-value <0.05). Companies agricultural mining that interest investors. In contrast, financial, trade, services, investment not attractive investors negative cumulative returns.