摘要：This paper investigates the changes in stock market returns before and after the announcement of a
sample of three instalments, or ‘volumes’, (I, X, and XVI) of the Indonesian government’s Economic
Policy Package (EPP), between 2015 and 2017. It tracks Abnormal Return (AR) and Cumulative
Abnormal Return (CAR) on the Composite Stock Price Index (JCI) and ten sectorial indices
of the Indonesia Stock Exchange. By testing for the direction and significance of differences in AR
and CAR, the paper aims to clarify whether those announcements provided sufficient informational
content to sway prices. The study finds that the impact of the policy announcements was recorded
primarily by individual sectors, but did not elicit a significant market-wide response. Moreover, the
majority of economic sectors consistently reacted negatively. This shows that, overall, capital markets
did not feel those government policies contain sufficient measures to remove obstacles to business
activity.
