This studyis intendedto analyze the effect of herding behavior and overconfidence in encouraging investmentdecision-makingby investors on the Indonesia Stock Exchange in the Jakarta area.The population ofthis research is investors who invest in investment instruments listed on the Indonesia Stock Exchange in the Jakarta area with an unknown population, and the number of samples in this study is 100 investors. Data analysis in this study used an alternative method of Structural Equation Modeling (SEM) withWrap PLS5.0 data processing tools. The findings of thisstudy isherding has a positive and significant effect on investment decisions by investors in the Jakarta area. Overconfidence has a positive and significant effect on investment decisions by investors in the Jakarta area. This means that the increasing herding and overconfidence of investors can drive the investor’s decisions making in the Jakarta area.
