PENGARUH KETIDAKPASTIAN EKONOMI TERHADAP HUTANG PERUSAHAAN DI INDONESIA [THE EFFECT OF ECONOMIC UNCERTAINTY ON COMPANY DEBT IN INDONESIA]

Economic uncertainty in one country is one of the factors that influence the decision making of debt financing in companies. A high level economic uncertainty can reduce the company's debt level. However, it can also increase the company's debt level. This study aims to examine the effect of economic uncertainty on the level of corporate debt in Indonesia. In this study using 250 companies listed on the Indonesia Stock Exchange starting from the period 2012Q1-2020Q4. The results of the study indicate that economic uncertainty has a negative effect on the market leverage and book leverage of the company. In addition, companies in Indonesia tend to choose to reduce their debt funding when economic uncertainty occurs.