DOI: 10.17233/sosyoekonomi.2026.04.07 ISSN: 1305-5577

Firm-Level Profitability Under Macroeconomic Stress: Evidence from Interest Rate, Exchange Rate, And Pandemic Regime Sensitivities in Indonesia's ILQ45 Firms

Andewi Rokhmawati, Nurhidayah Yahya, Yusni Maulida, Aulia Pinto Atami
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This study looks at what drives company profits during tough economic times by focusing on Indonesia's ILQ45 firms between 2017 and 2023. It examines how interest rates, exchange rates, and economic shifts, especially before, during, and after COVID-19, affect profitability. The findings show that companies more sensitive to interest rate changes tend to perform better, likely because of stronger financial foundations. Exchange rate effects were minimal, possibly due to built-in protections. High debt levels hurt profits, while being a larger firm did not guarantee better results. Some sectors, such as consumer goods and finance, held up well, while others, such as real estate, struggled more.

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