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Vol 41 No 2 (2026): May

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Feb 25, 2024
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May 26, 2026
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G20 Presidency and the Economic Symbiosis of India and Indonesia Based on the Stock Market, Exchange Rate, and Foreign Trade

https://doi.org/10.22146/jieb.v41i2.12346
T Mohanasundaram
tmohansun@gmail.com
Department of Management Studies, M. S. Ramaiah Institute of Technology, India
Shanthi D
Department of Management, Yenepoya Deemed to be University, Bengaluru Campus, India
Rizwana M
Department of Management Studies, M. S. Ramaiah Institute of Technology, India
Vetrivel SC
Department of Management Studies, Kongu Engineering College, India
Dheepa T
School of Business and Management, CHRIST University, India

Corresponding Author(s) : T Mohanasundaram

tmohansun@gmail.com

Journal of Indonesian Economy and Business, Vol 41 No 2 (2026): May

Abstract

Introduction/Main Objectives: The primary aim of the research is to assess the long-run and short-run dynamic interaction of the stock market, exchange rate and foreign trade between India and Indonesia during the period covered by their successive G20 presidencies. Background Problems: Given the economic significance of India and Indonesia, it is important to examine the performance of their stock market, exchange rate and foreign trade, and explore any connections between them, with the two-year period covered by their recent G20 presidencies providing an interesting window. Novelty: Despite India and Indonesia being emerging economic powerhouses, there are no studies exploring their economic nexus in the context of their successive G20 presidencies This period is chosen because under the G20 framework, both countries intensified their economic and climate collaboration, in turn enhancing their interdependence to make it pivotal. Research Methods: This study examines the empirical relationship between exchange rates, foreign trade, and the stock market indices of India and Indonesia during their G20 presidencies. It analyses historical data from December 2021 to November 2023 using econometric methods to understand the dynamic interactions among these variables. Finding/Results: Over the two years analysed, all economic variables are non-stationary and integrated at level one. Johansen's cointegration test shows long-run equilibrium between the chosen variables. The VECM suggests that short-run deviations in the JKSE are corrected by other variables. The OLS regression finds that changes in the JKSE are significantly explained by Indonesia's net trade. Additionally, the study confirms short-run interaction between the selected economic variables. Conclusion:The study uncovers connections between India and Indonesia's key economic variables, empowering both countries to make informed decisions on bilateral trade, currency policies, and economic cooperation. This understanding of short-term dynamics and long-term associations also assists investors in shaping investment strategies and managing risks effectively.

Keywords

Stock index exchange rate foreign trade cointegration Granger causality
Mohanasundaram, T., D, S., M, R., SC, V., & T, D. (2026). G20 Presidency and the Economic Symbiosis of India and Indonesia Based on the Stock Market, Exchange Rate, and Foreign Trade . ournal of ndonesian conomy and usiness, 41(2), 303 -. https://doi.org/10.22146/jieb.v41i2.12346
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Author Biographies

T Mohanasundaram, Department of Management Studies, M. S. Ramaiah Institute of Technology, India

Mohanasundaram Thangamuthu is an Associate Professor and researcher at the Department of Management Studies, M. S. Ramaiah Institute of Technology, India. He has 23 years of combined work experience in both academics and Industry. He earned his Bachelor’s degree in Commerce and his Master’s degree in Management, both from Bharathiar University, India. In addition, he completed his Ph.D. in Management Sciences at Anna University, India. His research interests lie in the areas of Macroeconomics, Financial Timeseries, Corporate Finance, and Predictive Analytics. He has made significant contributions to research and consultancy for various Government, public, and private institutions. He has successfully published many academic research articles in different top tier international journals.

Shanthi D, Department of Management, Yenepoya Deemed to be University, Bengaluru Campus, India

Shanthi Dhamodaran is an Assistant Professor and a passionate management teacher at the Department of Management, Yenepoya Deemed to be University, Bengaluru, India. She has 13 years of teaching experience in academia. She earned her Bachelor’s degree in Corporate Secretaryship from Bharathiar University and her Master’s degree in Management from Anna University, India. Her research interests lie in the areas of Banking, Business Analytics, and Financial Markets. She has conducted numerous workshops and Training programmes for the benefit of Students. She has published research papers in reputed journals and presented papers at international conferences organised by leading institutions in India.

Rizwana M, Department of Management Studies, M. S. Ramaiah Institute of Technology, India

Rizwana Mehar is an accomplished academician, researcher, and educator with over 20+ years of experience in management education. Currently serving as an Associate Professor in the MBA Department at M.S. Ramaiah Institute of Technology, Bengaluru, India. She earned her Bachelor’s degree in Science from Bharathiar University, India and her M. Phil degree in Management from Periyar University, India. In addition, he completed her Ph.D. at Bharathiar University, India. She has published more 30+ research papers in reputed Scopus and Web of Science indexed journals. Her research interests lie in the areas of Artificial Intelligence adoption, Electric vehicles, Consumer behaviour, and Entrepreneurship.

Vetrivel SC, Department of Management Studies, Kongu Engineering College, India

Vetrivel Seetharampalayam Chettiannan is a faculty member in the Department of Management Studies at Kongu Engineering College, India. He has over 42 years of combined industry and teaching experience. He holds a Ph.D. in Management Sciences from Anna University, Chennai, and is actively engaged in research, consultancy, and academic development activities. His expertise includes Entrepreneurship, Business Law, Marketing, and Case Writing.  He has over 100 publications in national and international journals. He has successfully guided multiple Ph.D. Scholars.

Dheepa T, School of Business and Management, CHRIST University, India

Dheepa Thangamani is an Associate Professor at the School of Business and Management, Christ (Deemed to be University), Bangalore, with over 20 years of experience in academia. She earned her Bachelor’s degree in Computer Applications and her Master’s degree in Management from Avinashilingam University. In addition, she completed her Ph.D. in Management from Mother Teresa University, India. She has received multiple funded research projects sponsored by the UGC, AIMS, and ICSSR, addressing issues such as the socio-economic status and social security of migrant labourers. She has presented over 40 papers at national and international conferences and has published numerous articles in esteemed journals.

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