SUMMARY
This research was conducted to investigate the influence of country-specific factors on macroeconomic indicators on capital structure decision of process manufacturing industry’s companies in Indonesia. This study used a sample of 45 public companies from process manufacturing industry in Indonesia within the period of 2015-2019. Using the balanced panel data regression, with the estimation technique of random effect model, the result of this study shows the country-specific factors which consist of prime lending rate, GDP growth, inflation rate, exchange rate, and corporate tax rate do not have any direct influence on the capital structure decision of firms, while the selected firm-specific variables such as profitability, tangibility and growth rate are significant determinants of capital structure decision from process manufacturing industry’s companies in Indonesia.