Abstract
<title>Abstract</title> <p>This study investigates how global risk affects Indonesia’s financial market through the Sri Kehati Index, Jakarta Composite Index, Global Economic Policy Uncertainty Index, and policy interest rate. Using monthly data from July 2009 to June 2025 and a VAR model with Granger causality and impulse responses, the findings show a bidirectional relationship between global risk and the stock market. Global risk also has a one-way effect on the policy rate. Stock indices react strongly to shocks but gradually stabilize, while interest rates remain relatively stable. These results stress the need for coordinated, data-driven policies to strengthen financial resilience. JEL Classification C22; G11; G12; E52; Q01</p>