Based on a macro perspective, higher oil prices cause higher marginal production costs, so companies with additional costs cut production costs such as raw material costs and labor. As a result, production will decrease and unemployment will increase. Both of these phenomena show a decrease in economic output and the expected estimated income will make investors careful in investing, meaning that ISSI will go down (Beik & Fatmawati, 2014). (Ash-shiddiqy, 2018) explains that oil imports and export activities cause the transfer of wealth from importing countries to exporting countries. This reduces demand or purchasing power for importing countries, weakens the economy, and ultimately decreases ISSI. According to (Ranto, 2019) when oil prices rise, consumption of investment products or purchasing power decreases due to discharged revenue, investment or productivity decreases due to business costs rising, ISSI falls due to decreased productivity, this can result in decreased profits and even losses.

Investing in the sharia sector does not always invest in Islamic stocks, but there are also Islamic investment products that are growing rapidly in Indonesia, namely ISCB. Similar to the sharia index, ISBC is a tool in the field of Islamic investment, offering a return of ISBC similar to those available when investing in the Sharia Index (Umam et al., 2019). In addition, the development of ISBC is always changing every month. Fluctuations in ISBC yields can affect Islamic banks to invest in ISBC so that Islamic banks can benefit and share benefits with savings or deposit customers. The distribution also increases, and this can cause investors to switch to Islamic banks rather than Islamic capital markets (Harahap & Tambunan, 2022).

The relationship between the money supply and ISSI remains unclear. First, the money supply has a negative impact on ISSI. When the money supply increases, it causes inflation, and the government raises interest rates and lowers ISSI. On the other hand, an increase in the money supply stimulates the economy, increases corporate earnings, and ultimately has a positive impact on ISSI (Ranto, 2019). (Godfrey, 2021) uses an approach from Fisher's quantity theory of money to explain the relationship between the money supply and ISSI. According to this, ISSI is directly proportional to the money supply. According to (Conrad, 2021), the positive relationship between the money supply and ISSI can be explained in three different ways. First, higher economic productivity leads to higher demand and higher ISSI. Therefore, the central bank must provide money or increase the money supply to prevent deflation. Second, the money supply causes an increase in purchasing power or an increase in the demand for wealth, and ISSI rises at a constant number of shares. Third, an increase in the money supply leads to a lower interest rate, lowering the discount rate of future cash flows from the firm's expected earnings. A study by (Qing & Kusairi, 2019) supports the reasons above, that expansionary monetary policy stimulates the economy and increases people's cash flow. This will also increase the demand for stocks and other assets. After these needs are met into actual purchases, ISSI can go up.

The relationship between the exchange rate and ISSI is explained by (Junaidi et al., 2021) who argue that changes in exchange rates can directly change the ISSI of multinational companies and indirectly increase the ISSI of domestic companies. For multinational companies, changes in exchange rates change the value of the company's foreign operations and are reflected on the balance sheet as profit or loss. The company's assets and liabilities change, so the net effect is profit or loss. After earnings are announced, the company's ISSI fluctuates. A depreciating exchange rate causes multinational companies to incur additional production costs on local inputs, thereby reducing dividends and reducing ISSI (positive relationship). According to (Tripuspitorini et al., 2021), exchange rate fluctuations can hinder capital flows by increasing the risk and uncertainty of foreign direct investment. Therefore, the exchange rate must form a balance. A study by (Qing & Kusairi, 2019) found that capital markets perform better when exchange rates are low (when the domestic currency strengthens). Studies by (Ding, 2021) also prove that ISSI rises when the exchange rate rises. However, according to (Ghazo et al., 2021), the increase in the local currency means that foreign investors are reluctant to invest in the domestic capital market. This is because the ISSI for foreign investors is rising. Thus, the funds you need to spend to buy these shares will be more or more expensive. Therefore, foreign investors' demand for shares decreased and ISSI fell.

According to (Cornell, 1983), ISSI decreases because the real component of the nominal interest rate is expected to rise. This increase can have direct and indirect effects on ISSI. This increase immediately indicates that the real discount rate or interest rates on loans and bonds are also increasing, making financial market returns more favorable than capital (investment) market returns. Ultimately, the demand for shares will decrease and ISSI will fall. Research (Conrad, 2021) finds that ISSI is affected by a decrease in interest rates. Low-interest rates increase the value of dividends. This is because the company will pay a lower interest rate on loans, so the company's profits are higher and higher dividends are paid. According to (Fuad & Yuliadi, 2021), reduced interest rates can be used by companies to expand their operations. According to (Ghazo et al., 2021), an increase in real interest rates has a negative impact on investment decisions. This he can explain in two terms. The first condition is that if interest rates are high and investors are willing to borrow for speculation on the stock market, the increase in investor costs (loan interest rates) will be high. This limits his investment decisions in the stock market. The second case is when real interest rates are high and investors are willing to invest their money in the stock market. Investors prefer to keep their money in the bank rather than take risks in the stock market. As a result, investment and demand for shares will decrease.

High inflation causes the fall of ISSI and vice versa. The reason behind this statement is that higher inflation indicates lower expected dividend growth or higher subjective risk premium (Fuadi, 2020). This leads to the conclusion that when inflation is high, investors' returns are small. According to (Shih & Hoang, 2021), higher inflation can lead to higher production costs and product selling prices. Higher selling prices result in lower market demand, so companies respond by reducing production, which ultimately leads to lower efficiency and profitability. His research found that inflation had little impact on ISSI. This is because inflation is only one digit, so changes in inflation do not have a significant impact on ISSI's decisions. According to (Luwihono et al., 2021), Rising inflation reduces the real income of people with fixed income. This reduces purchasing power. Therefore, people's low purchasing power reduces demand for the company's products and reduces net profit. Lower profits can be interpreted as lower company performance, which can lead to lower demand for various types of shares.

The VECM model test was carried out because the results of the cointegration test showed that there was cointegration between the IPI, ISBC, money supply, exchange rates, interest rate, and inflation variables with ISSI. The results of the VECM estimation will show the relationship in the long term and the relationship in the short term for each variable. The VECM estimation results are as follows:

The table above is the result of long-term VECM estimation, from these results some variables have an influence on ISSI, as follows: The IPI variable has a negative effect on ISSI with a T-statistic value of -8.30868 smaller than T-table -2.02619, meaning that if IPI experiences an increase of 1% means that ISSI decreases by 0.21%, and the inflation variable has a negative effect on ISSI with a T-statistic value of -4.48109 which is smaller than T-table -2.02619, meaning that if inflation increases by 1% then ISSI decreases by 0.01%. Then the IR variable has a positive effect on ISSI as evidenced by the T-statistic value of 2.10608 which is greater than T-table 2.02619, so if IR increases by 1%, then ISSI increases by 0.01%. Meanwhile, the ISBC variable does not have a negative effect on ISSI with a T-statistic value of -1.47084 greater than T-table -2.02619, so if ISBC increases by 1%, then ISSI remains the same as ISBC, the MS variable, and ER do not have a positive effect on ISSI with a T value. -statistics 0.67770 and 0.94564 are smaller than T-table 2.02619, so, if the MS and the ER increase by 1%, then ISSI remains the same.

Based on the VECM estimation test in the short term, it was found that all variables did not affect ISSI because the T-statistics were below the T-table. As for a more detailed explanation of how the variable responds when experiencing shock or shock, it can be explained through the results of the Impulse Response Function (IRF).

Impulse Response Function (IRF) analysis is used to see the response of dependent variables in the VECM caused by shock. IRF also provides information on how long the effect of the shock on the variable will be in the future for 60 periods. The following are IRF results from IPI, ISBC, MS, ER, IR, and Inflation.

The results of the IRF test in the figure above show the ISSI response to shock for all variables. The first is a positive stable response after experiencing shocks in periods 1-5 and is stable until the end is responded by IPI (blue) ISBC (orange) MS (green) and the ER (black), the two negative responses in 1-7 experience ups and downs to shocks but from period 8 to the end of that the response was stable as shown by inflation (purple) and IR (light green) fluctuated until the 4th period and then stabilized close to the ISSI stable line. But the essence of the IRF test shows that when there is a shock raised by several dependent variables, ISSI responds quickly and stably until the end of the test.

Forecast Error Variance Decomposition analysis is used to see how much a variable contributes to changes in each variable. Where the amount of value used is in the form of a percentage so that it can be seen what percentage of the contribution of all variables to the ISSI The following are the results of the Forecast Error Variance Decomposition test:

Based on the results of the VECM test, IPI has a long-term negative impact on ISSI. That is, as the IPI increases, the ISSI will decrease. IRF test results, ISSI responded positively to the shock caused by IPI, stable in the 5th period until the end of the test. Based on the results of the FEVD test, the IPI variable contributes an average of 0.64% to ISSI growth. This is following research by (Widarjono et al., 2021) which states that IPI has a negative relationship with the Indonesian sharia stock index, and (Nur & Fatwa, 2022) find the same thing. According to (Mankiw, 2010), there is a reciprocal relationship between the production index and ISSI. Economic growth shows the extent to which economic activity generates additional income for the community during a certain period. Because economic activity is essentially a process of using factors of production to produce products, this process creates a flow of rewards for the factors of production owned by the community (Todaro & Smith, 2011). Increased industrial activity is reflected in the Industrial Production Index. The higher the production level of an industry, the better management is needed to continue to meet consumer needs. And the better the company's manufacturing index, the better its stock index.

Based on the results of the VECM test, ISBC has a long-term negative impact on ISSI. This means that as ISBC increases, ISSI will decrease. IRF test results, ISSI responded positively to the shock caused by ISBC. Based on the results of the FEVD test, the ISBC variable contributed an average of 2.01% to ISSI growth. This is in line with the research of (Umam et al., 2019) that Indonesian Sharia Bank Certificate (ISBC) has a negative effect on the Indonesian Sharia Stock Index and (Rachmawati & Laila, 2015) explains that ISBC does not affect ISSI. Islamic banks that invest their funds in ISBC get a fee for services that help maintain the balance of the Indonesian currency. Since the rate of return offered by Bank Indonesia is related to its ISBC, there is no difference in profit resulting from the placement of these funds by Bank Indonesia. If the compensation received by the Indonesian bank for investing in its ISBC is large, then the profit generated by the Indonesian bank will be shared among the owners. This allows investors to switch to other investment vehicles, namely ISBC, not the Islamic capital market. It is not surprising that investor interest in investing in the Islamic capital market decreases, this will trigger a decline in the Islamic stock index.

Based on the results of the VECM test, MS has a long-term positive impact on ISSI. This means that as MS increases, ISSI will also increase. IRF test results, ISSI responded positively to the shock caused by MS. Based on the results of the FEVD test, the MS variable contributes an average of 0.45% to ISSI growth. The money supply (MS) can affect the results of sharia investments. If the MS increases, interest rates will increase. In this context, investors invest their money in the capital market (Mahfiroh & Ratno, 2021). MS growth influences economic growth, it also affects ISSI growth. A large increase in the money supply will cause inflation and can expand the company's funding sources by increasing the money supply for businesses which can increase production activities, improve performance and increase income. This is an incentive for investors to invest (Hakimi et al., 2020).

Based on the results of the VECM test, exchange rates have a long-term positive impact on ISSI. That is, when the exchange rate increases, the ISSI will also increase. IRF test results, ISSI responded positively to the shock caused by the exchange rate. Based on the results of the FEVD test, the exchange rate variable contributes an average of 0.64% to ISSI growth. This is following research by (Wulan, 2020) which states that exchange rates have a positive impact on ISSI. According to (Handri et al., 2021), the exchange rate and ISSI have a mutually influencing relationship both in the short and long term. The strengthening of the exchange rate has a positive impact on ISSI as a whole. The government's policy when the exchange rate rises are to lower interest rates to attract capital inflows so that the rupiah depreciates. However, a small interest rate can reduce the present value of a company's future cash flows and increase ISSI's growth.

Based on the results of the VECM test, IR has a long-term positive impact on ISSI. This means that as the IR increases, the ISSI will also increase. IRF test results, ISSI responded positively to the shock caused by IR. Based on the results of the FEVD test, the IR variable contributes an average of 0.01% to ISSI growth. (Sebo & Nafi, 2020) argues that one of the advantages of sharia instruments is that these shares have undergone a screening process following sharia instruments so that changes in interest rates have a significant impact on sharia stock indexes. It states that it is not. The next factor that affects investment returns is interest rates, or what is commonly called the BI interest rate (Wijaya, 2019). A high BI rate is a promising investment opportunity for investors because it generates higher returns. A high BI rate can put pressure on the capital market. (Misharni, 2018) and (Tripuspitorini et al., 2021) low BI rates encourage economic activity and investment. The low BI rate has an impact on ISSI appreciation, which also has an impact on sharia investment results.

Based on the results of the VECM test, inflation has a long-term negative impact on ISSI. That is, when inflation increases, ISSI will decrease. IRF test results, ISSI responds negatively to the shock caused by inflation. Based on the results of the FEVD test, the inflation variable contributed an average of 1.16% to ISSI growth. This is following research by (Ranto, 2019), and (Fuadi, 2020) which states that inflation is negatively related to the Indonesian sharia stock index. Inflation is a general and sustainable increase in commodity prices (Mishkin, 2010). Inflation can have a positive or negative impact on the economy, depending on the inflation rate. Even though Indonesia's inflation rate continues to fluctuate, it is possible that the level of investment in the Indonesian capital market, including the Indonesian Sharia Stock Index (ISSI), will be affected. According to (Sanjaya & Pratiwi, 2018), inflation has a negative and statistically significant effect on JII, and according to (Fathurrahman & Widiastuti, 2021), inflation has a significant negative effect on investment risk.